MIDI recorded revenue of Rp14.69 trillion in 9M24, growing 13.64% YoY (vs. Rp12.92 trillion in 9M23). Revenue in Food segment grew 12.8% YoY to Rp8.85 trillion (vs. Rp7.85 trillion in 9M23), Fresh Food segment grew 16% YoY to Rp2.08 trillion (vs. Rp1.79 trillion in 9M23), and Non-Food segment grew 14.32% YoY to Rp3.74 trillion (vs. Rp3.27 trillion in 9M23).

Non-operational performance improved in 9M24. MIDI’s non-operating expenses decreased by 57% YoY to Rp36 billion in 9M24 (vs. Rp83 billion in 9M23). The decline was aligned with MIDI’s Interest Expenses, which decreased by 55.7% YoY due to the repayment of MIDI’s short-term bank debt in 9M24. We assess that this condition can potentially improve MIDI’s financial performance, especially in maximizing profitability in the future.

Expansion continues in 9M24. During 9M24, MIDI added 123 Alfamidi stores and 9 Alfamidi Super stores, indicating that MIDI continues to expand to increase revenue. At the same time, 3 Midi Fresh outlets were closed. In addition, MIDI also evaluated Lawson stores by closing 79 Lawson stores that had negative EBITDA or cash flow to reduce further losses. In the future, MIDI plans to close all Lawson outlets with a store-in-store format as it is considered less profitable and will focus on Lawson with a stand-alone format.

MIDI innovated by launching a pilot project called JA-DI (Jajan di Alfamidi) in August 2024. MIDI targets to open 50 JA-DI booths by the end of 2024. We believe that this innovation can potentially increase MIDI’s sales and profitability in the future.

Using the Discounted Cash Flow method with a Required Return of 8.63% and Terminal Growth of 7.80%, we estimate MIDI’s fair value at IDR513 per share (Expected PE at 24.94x and EV/EBITDA at 9.24x in FY24). We give MIDI a Buy rating with a potential upside of 24.00%.

By PHINTRACO SEKURITAS | Research
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