SIDO Target Price Maintained Despite Weaker Earnings, Says Sucor Sekuritas
Main Takeaways
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JAKARTA, investortrust.id — PT Industri Jamu Dan Farmasi Sido Muncul Tbk, or SIDO, is expected to rebound in the second quarter of 2025, following a steep drop in first-quarter earnings. Sucor Sekuritas has retained its buy recommendation for the stock, maintaining a target price of Rp 630 per share.
In a recent research note, Sucor Sekuritas said the target price implies a 2025 price-to-earnings (PE) ratio of around 15.5 times. The valuation reflects SIDO's dominant 75% market share in Indonesia’s herbal products segment.
Weak Q1, But Outlook Remains Upbeat
SIDO's sales in the first quarter declined to Rp 789.10 billion ($48.9 million) from Rp 1.05 trillion ($65.2 million) in the same period last year. Operating profit fell sharply from Rp 491.43 billion to Rp 286.08 billion, while net income dropped from Rp 390.49 billion to Rp 232.94 billion.
Despite the downturn, SIDO management expects a rebound in the second quarter. “We project single-digit growth in Q1 2025, with the full-year growth potentially reaching 10%,” said Hansen Christian Seng, analyst at Sucor Sekuritas.
According to Seng, this projected recovery will be supported by improving macroeconomic conditions and SIDO’s strategic initiatives, including efforts to target Gen Z consumers and boost exports.
Lowered Profit Forecast, Steady Dividends
Sucor Sekuritas revised down its net income forecast for SIDO to Rp 1.22 trillion ($75.6 million) in 2025 and Rp 1.25 trillion ($77.5 million) in 2026, acknowledging the weak first-quarter performance.
Despite the earnings miss, SIDO has confirmed that it will distribute its entire 2024 net profit of Rp 1.17 trillion as dividends. A payout of Rp 21 per share, totaling Rp 630 billion ($39 million), will be made to shareholders on Monday, May 26, 2025.