Daily Brief Indonesia: PT Nippon Indosari Corpindo Tbk. (ROTI), Matahari Department Store, Pertamina Geothermal Energy PT and more

• PT Nippon Indosari Corpindo (ROTI IJ) booked a strong set of numbers for 1H2024 as it benefitted from a pick up outside Java plus a good showing from modern trade. 
• ROTI launched several new products in IH2024 both at the premium as well as at the more affordable level. It is also targeting a younger demographic with revamped packaging. 
• Management points towards a more positive 2H2024 with stronger growth outside Java and a lower return rate as new products gain traction with lower costs. Valuations are attractive versus history. 

• Matahari Department Store (LPPF IJ) reported a slightly weaker 1H2024 due to a slower performance over Lebaran and afterwards but remains confident in its ongoing initiatives to drive future growth. 
• The company will not open any new stores in the 2H2024 as it focuses on reservations and driving its private labels, including Suko and Nevada, and consignment vendors. 
• Matahari continues to drive its omnichannel sales and build on its membership penetration to better target sales. Valuations remain attractive on 4.2x FY2025E PER with a 13% dividend yield.

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• Pakuwon Jati
• Pertamina Geothermal Energy PT