AMRT booked revenue growth of 10.55% YoY to IDR118.23 trillion in FY24. The growth was driven by a 10.08% YoY increase in sales of the food segment to IDR83.28 trillion and an 11.7% YoY increase in the non-food segment to IDR34.95 trillion in FY24.

AMRT’s net profit grew 20.71% QoQ in 4Q24. The growth was driven by higher revenue and operating cost efficiency in 4Q24. This operating efficiency was mainly due to the decrease in selling and distribution expenses by 5.89% QoQ to IDR4.72 trillion in 4Q24, which caused operating expenses to decrease by 2.6% QoQ to IDR5 trillion in 4Q24.

Continued expansion supported FY24 performance. AMRT’s stores increased by 967 stores to 23,277 stores in FY24. In 2024, AMRT added 3 new distribution centers to improve supply chain efficiency and plans to add 2 new distribution centers in 2025.

AMRT acquired all the shares of PT Lancar Wiguna Sejahtera (LWS), which is owned by MIDI. The acquisition is expected to expand and strengthen AMRT’s Ready-to-Eat (RTE) food product category, as LWS currently operates 374 Lawson stores that sell mainly RTE products to consumers.

Using the Discounted Cash Flow method with a Required Return of 6.85% and Terminal Growth of 3.09%, we estimate AMRT’s fair value at IDR2,570 per share. Therefore, we maintain our Buy rating on AMRT with a lower target and potential upside of 31.46%.