Erajaya Swasembada

PT Erajaya Swasembada. PT Erajaya Swasembada Tbk is an Indonesia-based company primarily engaged in mobile phones and tablets distribution and retail business. Some mobile phone brands that it distributes and retails are Apple, BlackBerry, HTC, Huawei, LG, Motorola, Nokia, Samsung and Sony. It also distributes and retails prepaid top-up cards, subscriber identity module (SIM) cards, computers and other gadgets as well as mobile phone accessories. It operates its retail stores under various brands, such as Erafone Megastore; Erafone Gadget Store; iBox, which retails Apple products exclusively, and AndroidNation, which retails Android products exclusively. Its subsidiaries include PT Teletama Artha Mandiri, PT Erafone Artha Retailindo, PT Sinar Eka Selaras and PT Data Citra Mandiri.
  • TickerERAA
  • ISINID1000121601
  • ExchangeIndonesian Stock Exchange
  • SectorGeneral Retailers
  • CountryIndonesia
UOB
Benyamin Mikael

Erajaya Swasembada (ERAA IJ) - 2019: Net Profit Down 65% yoy, Below Expectation

ERAA reported 2019 net income of Rp295b, down 65% yoy. We believe the decline was mainly due to lower mobile handset sales volume and a lower gross margin alongside higher operating expense. The reported 2019 results underperformed UOBKH's (81.8%) estimate but was in-line with the Street's (96.9% level) full-year expectation. 4Q19 net income came in at Rp130b (-39.4% yoy and +129.6% qoq). We believe the decline was mainly due to higher operating expenses and a high base from other income in 4Q18. Maintain SELL with target price of Rp700.

UOB
Benyamin Mikael ...
  • Maskun Ramli

Indonesia Daily - Thursday, April 2, 2020

Erajaya Swasembada (ERAA IJ/SELL/Rp885/Target: Rp700): 2019: Net profit down 65% yoy, below expectation. TRADERS’ CORNER Semen Indonesia (SMGR IJ): Technical BUY Adaro Energy (ADRO IJ): Technical BUY

UOB
Arsit Pamaranont ...
  • Benyamin Mikael
  • Desmond Chong Chee Wai
  • Ivy Xu Da
  • Jonathan Koh
  • K Ajith
  • Kader Farhan Bin Kader Ridzwan
  • Kong Ho Meng
  • Lee Yuk Kei
  • Loke Pei Hao
  • Robin Yuen
  • Singapore Research Team
  • Vanness Wong Wan

Regional Morning Notes - Friday, March 27, 2020

GREATER CHINA Results China Mengniu Dairy (2319 HK/BUY/HK$26.60/Target: HK$32.50): 2019: Results beat expectations slightly; COVID-19 outbreak to weigh down 1H20. Haidilao International (6862 HK/SELL/HK$30.45/Target: HK$25.00): 2019: Earnings miss forecast; pressure on table turnover rates and margins. Huifu Payment (1806 HK/BUY/HK$2.53/Target: HK$3.60): 2019: The worst is over; digital transformation paying off. INDONESIA Update Erajaya Swasembada (ERAA IJ/SELL/Rp885/Target: Rp700): 2020 net profit to decline due to Covid-19; downgrade to SELL. MALAYSIA Results EcoWorld Development (ECW MK/...

UOB
Benyamin Mikael

Erajaya Swasembada (ERAA IJ) - 2020 Net Profit To Decline Due To Covid-19; Downgrade to SELL

We cut our 2020 sales volume forecast by 20% due to the impact of the COVID-19 outbreak. Based on our sensitivity analysis, a 5% decrease in mobile handset volumes in 2020 should spell a 6.5% yoy decline in profit. The IMEI regulation may not impact 2020 sales due to the COVID-19 outbreak. In 2020, ERAA plans to open 300 stores. We expect 2020 net income to fall 31.6% yoy. Downgrade to SELL with a lower target price of Rp700, based on 2020F PE of 8.8x.

UOB
Benyamin Mikael ...
  • Maskun Ramli

Indonesia Daily - Friday, March 27, 2020

Erajaya Swasembada (ERAA IJ/SELL/Rp885/Target: Rp700): 2020 net profit to decline due to Covid-19; downgrade to SELL. TRADERS’ CORNER Bank Danamon (BDMN IJ): Technical BUY Adhi Karya (ADHI IJ): Technical BUY

UOB
Benyamin Mikael

Erajaya Swasembada (ERAA IJ) - 2019: Net Profit Down 65% yoy, Below Expectation

ERAA reported 2019 net income of Rp295b, down 65% yoy. We believe the decline was mainly due to lower mobile handset sales volume and a lower gross margin alongside higher operating expense. The reported 2019 results underperformed UOBKH's (81.8%) estimate but was in-line with the Street's (96.9% level) full-year expectation. 4Q19 net income came in at Rp130b (-39.4% yoy and +129.6% qoq). We believe the decline was mainly due to higher operating expenses and a high base from other income in 4Q18. Maintain SELL with target price of Rp700.

UOB
Benyamin Mikael ...
  • Maskun Ramli

Indonesia Daily - Thursday, April 2, 2020

Erajaya Swasembada (ERAA IJ/SELL/Rp885/Target: Rp700): 2019: Net profit down 65% yoy, below expectation. TRADERS’ CORNER Semen Indonesia (SMGR IJ): Technical BUY Adaro Energy (ADRO IJ): Technical BUY

UOB
Arsit Pamaranont ...
  • Benyamin Mikael
  • Desmond Chong Chee Wai
  • Ivy Xu Da
  • Jonathan Koh
  • K Ajith
  • Kader Farhan Bin Kader Ridzwan
  • Kong Ho Meng
  • Lee Yuk Kei
  • Loke Pei Hao
  • Robin Yuen
  • Singapore Research Team
  • Vanness Wong Wan

Regional Morning Notes - Friday, March 27, 2020

GREATER CHINA Results China Mengniu Dairy (2319 HK/BUY/HK$26.60/Target: HK$32.50): 2019: Results beat expectations slightly; COVID-19 outbreak to weigh down 1H20. Haidilao International (6862 HK/SELL/HK$30.45/Target: HK$25.00): 2019: Earnings miss forecast; pressure on table turnover rates and margins. Huifu Payment (1806 HK/BUY/HK$2.53/Target: HK$3.60): 2019: The worst is over; digital transformation paying off. INDONESIA Update Erajaya Swasembada (ERAA IJ/SELL/Rp885/Target: Rp700): 2020 net profit to decline due to Covid-19; downgrade to SELL. MALAYSIA Results EcoWorld Development (ECW MK/...

UOB
Benyamin Mikael

Erajaya Swasembada (ERAA IJ) - 2020 Net Profit To Decline Due To Covid-19; Downgrade to SELL

We cut our 2020 sales volume forecast by 20% due to the impact of the COVID-19 outbreak. Based on our sensitivity analysis, a 5% decrease in mobile handset volumes in 2020 should spell a 6.5% yoy decline in profit. The IMEI regulation may not impact 2020 sales due to the COVID-19 outbreak. In 2020, ERAA plans to open 300 stores. We expect 2020 net income to fall 31.6% yoy. Downgrade to SELL with a lower target price of Rp700, based on 2020F PE of 8.8x.

UOB
Benyamin Mikael ...
  • Maskun Ramli

Indonesia Daily - Friday, March 27, 2020

Erajaya Swasembada (ERAA IJ/SELL/Rp885/Target: Rp700): 2020 net profit to decline due to Covid-19; downgrade to SELL. TRADERS’ CORNER Bank Danamon (BDMN IJ): Technical BUY Adhi Karya (ADHI IJ): Technical BUY

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