KLBF booked revenue growth of 4.6% YoY to IDR17.08 trillion in 6M25. This growth was driven by higher sales in almost all of KLBF’s business segments, except for the nutritional segment, which experienced a decrease of 3.26% YoY to IDR4 trillion in 6M25.

We estimate KLBF’s net profit to potentially grow 7.97% YoY to IDR3.5 trillion in FY25F. This estimate is based on potential revenue growth supported by KLBF’s various initiatives. During 6M25, KLBF booked a net profit growth of 10.78% YoY to IDR2.03 trillion. This growth was driven by non-operating efficiency amidst increasing operating expenses in 6M25.

The Gross Domestic Product (GDP) of the chemical, pharmaceutical, and traditional medicine industries continued its positive trend in 2Q25. Meanwhile, the PMI of this industry has remained in the expansive zone since 4Q23. We assess that this industry still has room to grow in the future, considering that this industry has a crucial position in the economy, with a contribution to GDP reaching IDR108.6 trillion in 2Q25.

KLBF continues to innovate and collaborate to drive long-term growth. In the past year, KLBF has undertaken various initiatives, such as the inauguration of a radiopharmaceutical production plant, established a strategic partnership with GE HealthCare, established a joint venture with Livzon Pharmaceutical Group Inc., and continues to innovate by presenting products that are affordable and practical. We assess that the various initiatives undertaken have the potential to drive KLBF’s business growth in the future.

We give a Buy recommendation for KLBF with an estimated fair value of IDR1,640 per share or a potential upside of 38.98%. This recommendation is based on a calculation using the Discounted Cash Flow method with a Required Return of 8.47% and a Terminal Growth of 3.00%.

By PHINTRACO SEKURITAS | Research
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