KLBF has revised down its revenue target due to divestment of 58.1% stake in PT Kageo Igar Jaya Tbk IGAR). Historically, IGAR was contributing 4% to KLBF’s revenue. With this divestment, KLBF’s forecasted sales growth for the year is down by 1% to 12-14% from 13-15%, translating into revenue of Rp10tr–Rp11.26tr a rise from its FY09 revenue of Rp9tr.
Yet, there is no change of KLBF’s net profit target of around Rp1.2tr-Rp1.3tr which is a 29%-40% y-o-y from the FY09 figure of Rp929bn. In its 23 August public disclosure, Vidjongtius, KLBF’s Corporate Secretary, was confident of securing stronger profit margin due to appreciating Rupiah and stable commodity price.
As planned, in attempt to bolster its revenue growth, KLBF will penetrate Vietnam and Nigeria markets to market Extra Joss through Joint Venture. KLBF is prepared to spend US$10m (approximately Rp90bn) for these expansions, which will be internally financed.
We maintain our hold call with TP Rp2,585 as we have taken into account the divestment and the revised target in the valuation. Our FY10 earning and net profit targets for KLBF are Rp10.1tr and Rp1.2tr consecutively. Strong potential catalyst would come from materialization of KLBF’s acquisition plan.
Tampilkan postingan dengan label Kalbe Farma: Hold; Rp2. Tampilkan semua postingan
Tampilkan postingan dengan label Kalbe Farma: Hold; Rp2. Tampilkan semua postingan
Senin, 30 Agustus 2010
Jumat, 06 Agustus 2010
DBS Kalbe Farma: Hold; Rp2,325; TP Rp2,585; KLBF IJ
Kalbe Farma International Expansion Plan
After Extra Joss’s successful penetration to Philippine, KLBF is also planning to penetrate Vietnam and Nigeria markets. KLBF will establish a Joint Venture (JV) with local Vietnamese counterparty to market Extra Joss. KLBF hopes to realize this plan by 2011 and prepare US$5m for this expansion. KLBF will also spend US$5m to establish JV with local Nigeria counterparty to market Extra Joss by this year. This Nigeria plan is a further expansion plan after the development of pharmaceuticals factory in Lagos under the Orange Kalbe Limited JV. Although current export sales only contribute approximately 5% of KLBF total revenue, it is expected that Extra Joss international sales could offset the loss of domestic market share to Kuku Bima. The US$10m (Rp90bn) funds required will be internally financed as KLBF cash reserve at 30 June 2010 was at Rp1.47tn.
KLBF has revised this year’s net profit forecast up to Rp1.3tn from Rp1.1tn as it will launch 15 new products this year. Despite this launching plan, KLBF will not increase its 2010 capex budget of Rp450bn. KLBF will spend more than budgeted capex if its acquisition plan materialized. This acquisition plan is still very much on its KLBF agenda.
We maintain our hold call with TP 2585 as we have taken into account this news in the valuation. Strong potential catalyst would come from materialization of KLBF’s acquisition plan.
After Extra Joss’s successful penetration to Philippine, KLBF is also planning to penetrate Vietnam and Nigeria markets. KLBF will establish a Joint Venture (JV) with local Vietnamese counterparty to market Extra Joss. KLBF hopes to realize this plan by 2011 and prepare US$5m for this expansion. KLBF will also spend US$5m to establish JV with local Nigeria counterparty to market Extra Joss by this year. This Nigeria plan is a further expansion plan after the development of pharmaceuticals factory in Lagos under the Orange Kalbe Limited JV. Although current export sales only contribute approximately 5% of KLBF total revenue, it is expected that Extra Joss international sales could offset the loss of domestic market share to Kuku Bima. The US$10m (Rp90bn) funds required will be internally financed as KLBF cash reserve at 30 June 2010 was at Rp1.47tn.
KLBF has revised this year’s net profit forecast up to Rp1.3tn from Rp1.1tn as it will launch 15 new products this year. Despite this launching plan, KLBF will not increase its 2010 capex budget of Rp450bn. KLBF will spend more than budgeted capex if its acquisition plan materialized. This acquisition plan is still very much on its KLBF agenda.
We maintain our hold call with TP 2585 as we have taken into account this news in the valuation. Strong potential catalyst would come from materialization of KLBF’s acquisition plan.
DBS Kalbe Farma: Hold; Rp2,325; TP Rp2,585; KLBF IJ
Kalbe Farma International Expansion Plan
After Extra Joss’s successful penetration to Philippine, KLBF is also planning to penetrate Vietnam and Nigeria markets. KLBF will establish a Joint Venture (JV) with local Vietnamese counterparty to market Extra Joss. KLBF hopes to realize this plan by 2011 and prepare US$5m for this expansion. KLBF will also spend US$5m to establish JV with local Nigeria counterparty to market Extra Joss by this year. This Nigeria plan is a further expansion plan after the development of pharmaceuticals factory in Lagos under the Orange Kalbe Limited JV. Although current export sales only contribute approximately 5% of KLBF total revenue, it is expected that Extra Joss international sales could offset the loss of domestic market share to Kuku Bima. The US$10m (Rp90bn) funds required will be internally financed as KLBF cash reserve at 30 June 2010 was at Rp1.47tn.
KLBF has revised this year’s net profit forecast up to Rp1.3tn from Rp1.1tn as it will launch 15 new products this year. Despite this launching plan, KLBF will not increase its 2010 capex budget of Rp450bn. KLBF will spend more than budgeted capex if its acquisition plan materialized. This acquisition plan is still very much on its KLBF agenda.
We maintain our hold call with TP 2585 as we have taken into account this news in the valuation. Strong potential catalyst would come from materialization of KLBF’s acquisition plan.
After Extra Joss’s successful penetration to Philippine, KLBF is also planning to penetrate Vietnam and Nigeria markets. KLBF will establish a Joint Venture (JV) with local Vietnamese counterparty to market Extra Joss. KLBF hopes to realize this plan by 2011 and prepare US$5m for this expansion. KLBF will also spend US$5m to establish JV with local Nigeria counterparty to market Extra Joss by this year. This Nigeria plan is a further expansion plan after the development of pharmaceuticals factory in Lagos under the Orange Kalbe Limited JV. Although current export sales only contribute approximately 5% of KLBF total revenue, it is expected that Extra Joss international sales could offset the loss of domestic market share to Kuku Bima. The US$10m (Rp90bn) funds required will be internally financed as KLBF cash reserve at 30 June 2010 was at Rp1.47tn.
KLBF has revised this year’s net profit forecast up to Rp1.3tn from Rp1.1tn as it will launch 15 new products this year. Despite this launching plan, KLBF will not increase its 2010 capex budget of Rp450bn. KLBF will spend more than budgeted capex if its acquisition plan materialized. This acquisition plan is still very much on its KLBF agenda.
We maintain our hold call with TP 2585 as we have taken into account this news in the valuation. Strong potential catalyst would come from materialization of KLBF’s acquisition plan.
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