Equity Analysis /

ID : Ace Hardware Indonesia - Slow Dec 20 sales, largely as expected

    14 January 2021
    Published byCGS-CIMB

    ACES’s Dec 20 sales fell by 12% yoy (Nov: -4.4%), bringing FY20F net sales to Rp7.46tr; broadly in line with consensus and our estimate at 97%. Due to the slower sales, we cut FY20-22F EPS by 1-8%. We project FY20F NP to decline by c.30% yoy, before recovering to a 36% growth in FY21F. Maintain Hold on ACES with unchanged TP. We expect ACES to be a laggard in SSSG recovery vs. peers in FY21F as ACES performed well last year.