SIDO experienced a decrease in revenue by 3.57% YoY to IDR1.83 trillion in 6M25, along with lower sales in all of SIDO’s business segments in 6M25. Going forward, we expect a better demand in 2H25, along with the estimated peak of the rainy season that will happen from November 2025 to February 2026, which can potentially boost the demand for SIDO’s Tolak Angin products.

We estimate SIDO’s net profit to be stable in FY25F. This estimate is based on the limited revenue growth potential in FY25F due to people’s purchasing power that has not fully recovered, especially in the lower-middle class. During 6M25, SIDO experienced a decrease in net profit by 1.32% YoY to IDR600 billion, along with the decrease in revenue, which caused operating profit to decrease by 1.75% YoY to IDR746 billion in 6M25.

The chemical, pharmaceutical, and traditional medicine industries still have room to grow in the long term. This is based on the GDP trends of the chemical, pharmaceutical, and traditional medicine industries, which have continued to recover after Covid-19. In addition, manufacturing activity in this industry remains in an expansive zone in 2Q25 and has tended to stabilize over the past year.

SIDO is the market leader for common cold products, with the Tolak Angin brand. In addition, SIDO’s Tolak Angin and Kuku Bima Ener-G! products have successfully penetrated the global market. This indicates that SIDO’s products are not only well-received in the domestic market but also able to compete globally, which is expected to drive long-term growth.

We give a Buy recommendation for SIDO with an estimated fair value of IDR635 per share or potential upside of 20.95%. This recommendation is based on a calculation using the Discounted Cash Flow method with a Required Return of 8.26% and a Terminal Growth of 2.00%.

By PHINTRACO SEKURITAS | Research
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