MYOR recorded revenue growth of 11.99% YoY to IDR25.63 trillion in 9M24. The revenue growth was driven by revenue in the Packaged Food Processing segment, which grew by 36.84% QoQ or 14% YoY to IDR15.5 trillion in 9M24. Meanwhile, Packaged Beverages Processing segment grew by 18.19% QoQ or 21.23% YoY to IDR12.37 trillion in 9M24.

Rising raw material prices pressured MYOR’s margin in 9M24. MYOR’s cost of goods sold was recorded at IDR18.86 trillion in 9M24, up 16.47% YoY from IDR16.19 trillion in 9M23, which caused Gross Profit Margin (GPM) in 9M24 to depress 26.43% (vs. 29.26% in 9M23). The decline in GPM was due to the surge in Cocoa and Coffee prices. During 9M24, the average price of Cocoa increased by 155% YoY to US$7,853/ton (vs. US$3,085/ton in 9M23). Meanwhile, the average price of Coffee increased by 27.59% YoY to US$219/Lbs (vs. US$172/Lbs in 9M23)

MYOR seeks to maintain performance by increasing sales. Faced with the challenges of rising prices of Cocoa and Coffee raw materials, MYOR continues to drive sales growth by adjusting product selling prices, innovating products, and expanding export reach to several new destination countries to potentially maintain future performance.

MYOR recorded a stable net profit at IDR2 trillion in 9M24. On a quarterly basis, MYOR’s net profit fell 50.47% QoQ to IDR308 billion in 3Q24 (vs. IDR606 billion in 2Q24). We assess MYOR’s net profit in 3Q24 to be depressed due to the surge in Cocoa and Coffee commodity prices, reducing MYOR’s GPM. MYOR’s net profit in 9M24 was below our estimate as it was only 62.72% of our FY24F.

Using the Discounted Cash Flow method with Required Return of 7.12% and Terminal Growth of 4.55%, we estimate MYOR’s fair value at IDR2,880 per share (Expected PE at 20.38x and EV/EBITDA at 11.86x in FY24). Therefore, we maintain a Buy rating on MYOR with lower target and potential upside of 11.62%.

By PHINTRACO SEKURITAS | Research
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