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18 November 2024

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AMRT: 3Q24 Results – BUY, SSI TP: IDR 4,300

  • In 3Q24, AMRT revenue reached IDR 29.9tn (-3.0% QoQ; +10.7% YoY), bringing cumulative 9M24 revenue of IDR 88.2tn (+10.2% YoY), in line with ours and cons (SSI: 73.9%; Cons: 74.3%). 9M24 SSSG remained strong at 5.02% (FY23: 4.3%), which we attribute to stellar performance from Ex-Java stores.
  • From the profitability side, 3Q24 gross margin remained relatively stable at 21.0% (2Q24: 21.4%; 3Q23: 20.9%). The slight QoQ drop was primarily due to the decline in non-food margin to 22.1% (2Q24: 24.3%; 3Q23: 21.7%). Operationally, 3Q24 opex run-rate rose to 19.3% (2Q24: 18.4%; 3Q23: 19.2%), mainly due to operating costs of AMRT’s three new distribution centers, and additional expenses from store equipment replacements, This exerted pressure on EBIT margin, which fell to 2.7% in 3Q24 (2Q24: 3.9%; 3Q23: 2.9%). However, AMRT’s 3Q24 net profit still reached IDR 605bn (-33.1% QoQ; +4.7% YoY) with cumulative 9M24 net profit of IDR 2,477bn (+13.1% YoY), in line with ours and cons (SSI: 63.9%; Cons: 61.1%; seasonality: c.61%).
  • Going forward, AMRT expects a positive trajectory gross margin to be maintained, supported by ASP adjustments, robust traffic, and effective CRM program. On valuation, we retain a BUY with TP of IDR 4,300/ share, implying 1.3x P/S 2025F.

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