With ten stores located in five regions, PT Global Sukses Digital (DOSS), Indonesia’s largest camera distributor company, has rearranged and brought forward its pre-IPO expansion plans from 2025 to end-2024 (Ratu Plaza). This has raised total floor space by a whopping 67.4% to 4,845 sqm last year, before further increasing +20.6% by end-2025F to 5,845 sqm through 4 new store openings (Medan, Semarang, Banjarmasin, and Kendari). Thus, FY24-25F revenue growth will jump +28.9% YoY and +23.4% YoY for net profit. Helped also by increasing social media users coupled with price affordability of Japanese brands on yen weakness, DOSS is attractive trading on 2025 P/S of 0.4x given solid balance sheet. Initiate with BUY and IDR IDR220 TP, implying P/S 0.46x and reflecting +31.0% potential share price upside.
Sustained and unmatched customer-centric strategy. Founded in 2006, DOSS is Indonesia’s largest camera distributor with ten stores in five major Indonesian cities. In running its business, DOSS’ success is backed by regular customer-centric strategy, prioritizing experience and relationship. Unmatched by its competitors, the company maintains rigorous efforts with its client-base by having regularly scheduled gatherings which result in customer expansion. DOSS has had the experience in organizing more than 400 photography-related events, including exhibitions, workshops, and others. The company offers a wide range of photographic equipment with cameras as its biggest selling product (60.9% of FY23 revenues). By brand, Sony is by far the single biggest principal accounting for 58% of total FY24 revenues.
Expansions, affordability (on yen depreciation) & social media users to drive sales. DOSS has several expansion plans in its pipeline, which will increase current total net store area (2,895 sqm) to 4,845 sqm (+67.4% YoY) by end-2024F and 5,845 sqm (+20.6% YoY) by end-2025F. In the 4Q24F, the company has expanded its store in Ratu Plaza from 50 sqm to 2,000 sqm and plans to open four new outlets in Banjarmasin, Semarang, Kendari, and Medan in FY25F. Backed by these expansion plans and SSSG of 3-5%, we project DOSS to book FY24F revenue of IDR 634.5bn (+4.1% YoY), before jumping to IDR 817.6bn (+28.9% YoY) in FY25F, reflecting 5-year top line CAGR of +8.6%, supported by social media users coupled with price affordability of Japanese brands due to the yen depreciation of 10.6% 2024.
Initiate with BUY and 220 TP. We initiate coverage on DOSS with a BUY rating and IDR220/share TP, implying P/S 0.46x in 2025F, and reflecting +31.0% upside from its current price. Note that, we have toned down our 24F net profit expectation by 15% to IDR 24,542mn due to lower sales per sqm and softer margins on the back of weak purchasing power and down trading. Looking ahead, we project DOSS to book net profit of IDR 30,276mn in FY25F (+23.4% YoY) and IDR 31,851mn in FY26F (+5.2% YoY), translating to revised down 3.7% NPM from our previous forecast. At this stage, we remain relatively constructive on DOSS given its dominant camera-related market share, complete price points to allow customers down trading amid the current difficult operating environment and margin support helped by benefits of price protection from principals.
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