MYOR : Strong Positioning in Global Market

26 Jun 2024 Valdy

MYOR’s export share amounted to 36.12% of total sales in 3M24. MYOR’s export sales amounted to Rp3.16 trillion or contributed 36.12% of MYOR’s total sales in 3M24. When compared to its peers, MYOR’s export portion is the largest, which shows that it has a strong positioning in the global market and has advantages over national fast-moving consumer goods (FMCG) companies.

Net sales grew a limited 3.65% YoY in 3M24. MYOR’s sales were recorded at IDR8.76 trillion in 3M24 or grew a limited 3.65% YoY from IDR8.45 trillion in 3M23. The sales growth was supported by a significant increase in the packaged processed food segment of 10.18% YoY. Meanwhile, the packaged processed beverages segment grew limitedly by 1.10% YoY.

MYOR recorded a net profit of Rp1.13 trillion, growing significantly by 53.31% YoY during 3M24. The profit growth was driven by interest income, fixed asset sales, and foreign exchange gains that grew significantly. As a result, profit before tax earned by MYOR grew significantly by 53.76% YoY to Rp1.40 trillion in 3M24 from Rp915 billion in 3M23.

MYOR is facing some high raw material prices. Some of MYOR’s main raw materials for producing its products are Cocoa and Coffee, most of which are obtained domestically. During 2024, the prices of both raw materials have increased. We assess if the increase in raw material prices increases continuously and cannot be adequately addressed by MYOR, it will potentially erode the company’s profit margin in the future.

Using the Discounted Cash Flow method with Required Return of 7.21% and Terminal Growth of 4.55%, we estimate MYOR’s fair value at IDR2,950 per share (Expected PE at 17.29x and EV/EBITDA at 10.59x in FY24). We give MYOR a Buy rating with potential upside of 25.53%.

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