In today’s briefing:
- Bukalapak (BUKA IJ) – Track the Execution Not the Headlines
- PT Nippon Indosari Corpindo (ROTI IJ) – Adding Chocolate Spread and UHT Milk to the Mix
Bukalapak (BUKA IJ) – Track the Execution Not the Headlines
- Bukalapak (BUKA IJ) held its AGM this week, which effectively repeated the messages from its 1Q2022 results including guidance for FY2022 but there is more excitement beneath the headline numbers.
- One key metric tracked by management is the contribution margin, which is moving towards positive territory put take rates will improve for both Mitra and through its specialty store strategy.
- AlloFresh has launched and is testing the offline line efficiencies before being applied to Mitra partners and AlloBank has also started its digital journey. Bukalapak looks cheap.
PT Nippon Indosari Corpindo (ROTI IJ) – Adding Chocolate Spread and UHT Milk to the Mix
- PT Nippon Indosari Corpindo (ROTI IJ) recently announced that it will launch two new product lines away from bread including Sari Roti chocolate spread and UHT Milk.
- Investment in these products will be relatively small but it will increase the visibility of Sari Roti brands on the shelves of modern retail adding to its bread and cakes.
- Wheat prices have stabilised recently but ROTI may consider raising prices further after assessing June performance. 2Q2022 performance has been stronger than expected post-Lebaran, as demand improved with greater mobility.
Before it’s here, it’s on Smartkarma
