Equity Analysis /

ID : Indofood Sukses Makmur - CPO as the rising star

    30 August 2021
    Published byCGS-CIMB

    INDF’s 2Q21 results were better than subsidiary ICBP’s, with NP up 18% yoy, driven by its agribusiness segment (ICBP: +6% yoy). We expect CPO price to remain elevated in 2H21F; thus, we raise our FY21-23F EPS forecast by 19-23% to reflect a higher CPO price assumption. Reiterate Add on INDF, but at a lower SOP-based TP. The stock currently trades at an attractive 7.4x FY21F P/E (vs. ICBP’s 15.7x).