Equity Analysis /
Indonesia

ID : Indofood Sukses Makmur - Growth supported by its commodity biz

    Patricia Gabriela
    Patricia Gabriela

    Research Analyst

    CGS-CIMB
    1 April 2022
    Published by

    4Q21 NP fell 17% yoy (FY21: +18% yoy), beating consensus forecast but in line with ours. Sales grew 16% yoy in 4Q21, driven by its agribusiness.INDF is likely to hike prices amid higher wheat prices (+32 YTD) to maintain EBIT margin. Higher levy tax on CPO should have limited impact.We forecast FY22F sales/NP growth of 11%/26% for INDF, beating subsidiary CBP’s 12%/19%. Reiterate Add, with a higher SOP-based TP of Rp7.6k.