ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

<ul>
<li>Quick phone conversation with the IR of <a href="https://www.smartkarma.com/entities/18684" target="_blank" data-smartkarma-citation="entities:18684:1">Mitra Adiperkasa (MAPI IJ)</a> reveals that department stores segment is the star performer behind solid 9M18 results.</li>
<li>MAPI's target market of a more resilient upper income consumers bodes well amid potentially weaker macro consumption backdrop in 2019.</li>
<li>Measured stores expansion pace last four years suggests that stable margins in 2019 is possible despite department stores' already strong margins recovery in 9M18 (unlikely to be repeated for 2019). </li>
<li>In our opinion, MAPI's premium valuation (23% premium to average Indo retail peers) is justified on the account of resiliency factor.</li>
</ul>


Quick phone conversation with the IR of Mitra Adiperkasa (MAPI IJ) reveals that department stores segment is the star performer behind solid 9M18 results.
MAPI's target market of a more resilient upper income consumers bodes well amid potentially weaker macro consumption backdrop in 2019.
Measured stores expansion pace last four years suggests that stable margins in 2019 is possible despite department stores' already strong margins recovery in 9M18 (unlikely to be repeated for 2019). 
In our opinion, MAPI's premium valuation (23% premium to average Indo retail peers) is justified on the account of resiliency factor.


Mitra Adiperkasa

Mitra Adiperkasa: Resilient Retailer?