ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Nippon Indosari Corpindo / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-indosari-corpindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:1181:1" rel="noopener">PT Nippon Indosari Corpindo (ROTI IJ)</a> saw a relatively slow finish to the year with a slight decline in sales but the key drag came from a higher return rate.</li>
<li>4Q2023 did not see the usual seasonal spike but 2024 has started well and the return rate has come down, which will boost profitability as new products gain traction. </li>
<li>
<a href="https://www.smartkarma.com/entities/nippon-indosari-corpindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:1181:1" rel="noopener">ROTI</a> has launched several more affordable products to help drive its push into general trade whilst raw material prices remain under control. Valuations are attractive with recovery ahead.</li>
</ul>



PT Nippon Indosari Corpindo (ROTI IJ) saw a relatively slow finish to the year with a slight decline in sales but the key drag came from a higher return rate.
4Q2023 did not see the usual seasonal spike but 2024 has started well and the return rate has come down, which will boost profitability as new products gain traction. 

ROTI has launched several more affordable products to help drive its push into general trade whilst raw material prices remain under control. Valuations are attractive with recovery ahead.


PT Nippon Indosari Corpindo (ROTI IJ) - Headwinds Dissipating

External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

<ul><li>Post the tepid FY23 results, ROTI aims to focus on profitability in 2024 onward amid fewer catalysts for purchasing power in 2Q24 onward</li><li>We lowered our FY24/25F net profit estimates by 11%/2.4% due to lower volume estimates and a higher return rate</li><li>Maintain Buy with a lower TP of Rp1,400. Expect improved performance in the upcoming quarters to act as catalyst for the stock.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Post the tepid FY23 results, ROTI aims to focus on profitability in 2024 onward amid fewer catalysts for purchasing power in 2Q24 onwardWe lowered our FY24/25F net profit estimates by 11%/2.4% due to lower volume estimates and a higher return rateMaintain Buy with a lower TP of Rp1,400. Expect improved performance in the upcoming quarters to act as catalyst for the stock.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nippon Indosari Corpindo - FY24 Outlook: Focusing on Profitability

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-indosari-corpindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:1181:1" rel="noopener">PT Nippon Indosari Corpindo (ROTI IJ)</a> saw a strong QoQ recovery in sales in 3Q2023 but its return rate also increased as it adjusted to distributing new products.</li>
<li>Raw material &amp; packaging costs have abated and A&amp;P spending stabilised, giving the company a strong base for recovery, as it expands its distribution in modern and general trade.</li>
<li>The outlook for ROTI in 4Q and into FY2024 looks positive given a wider footprint and the potential for improvements in its return rate. Valuations are well below historical averages.</li>
</ul>



PT Nippon Indosari Corpindo (ROTI IJ) saw a strong QoQ recovery in sales in 3Q2023 but its return rate also increased as it adjusted to distributing new products.
Raw material &amp; packaging costs have abated and A&amp;P spending stabilised, giving the company a strong base for recovery, as it expands its distribution in modern and general trade.
The outlook for ROTI in 4Q and into FY2024 looks positive given a wider footprint and the potential for improvements in its return rate. Valuations are well below historical averages.


PT Nippon Indosari Corpindo (ROTI IJ) - Baking in Rising Expectations

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-indosari-corpindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:1181:1" rel="noopener">PT Nippon Indosari Corpindo (ROTI IJ)</a> booked a strong profit performance in 2Q2023 despite slower sales growth, as return rates normalised and raw material and packaging prices stabilised further. </li>
<li>Sales to Modern Trade led the way in 2Q2023 as post-pandemic consumption habits shifted to those formats, whilst General Trade saw pressure as hawkers and warung owners took holidays</li>
<li>ROTI should continue to benefit from lower input costs together with a normalisation of its General Trade Business plus productivity is set to improve markedly in 2H2023.</li>
</ul>



PT Nippon Indosari Corpindo (ROTI IJ) booked a strong profit performance in 2Q2023 despite slower sales growth, as return rates normalised and raw material and packaging prices stabilised further. 
Sales to Modern Trade led the way in 2Q2023 as post-pandemic consumption habits shifted to those formats, whilst General Trade saw pressure as hawkers and warung owners took holidays
ROTI should continue to benefit from lower input costs together with a normalisation of its General Trade Business plus productivity is set to improve markedly in 2H2023.


PT Nippon Indosari Corpindo (ROTI IJ) - Increasingly Oven Ready

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-indosari-corpindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:1181:1" rel="noopener">PT Nippon Indosari Corpindo (ROTI IJ)</a> booked results well above market expectations despite pressure from wheat flour and packaging costs, with greater efficiencies and cost savings boosting operating margins.</li>
<li>Modern trade continues to be the growth driver but general trade continues to grow plus the company's new Sari Kue cake products showed a strong performance at the margin. </li>
<li>
<a href="https://www.smartkarma.com/entities/nippon-indosari-corpindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:1181:1" rel="noopener">PT Nippon Indosari Corpindo (ROTI IJ)</a> should see further positive growth in 2023, with the potential for improving margins as input costs subside. Valuations are significantly below historical levels.</li>
</ul>



PT Nippon Indosari Corpindo (ROTI IJ) booked results well above market expectations despite pressure from wheat flour and packaging costs, with greater efficiencies and cost savings boosting operating margins.
Modern trade continues to be the growth driver but general trade continues to grow plus the company's new Sari Kue cake products showed a strong performance at the margin. 

PT Nippon Indosari Corpindo (ROTI IJ) should see further positive growth in 2023, with the potential for improving margins as input costs subside. Valuations are significantly below historical levels.


PT Nippon Indosari Corpindo (ROTI IJ) - Bring on the Baker

Indonesia

PT Nippon Indosari Corpindo Tbk is Indonesia's largest producer and distributor of bread products, operating in Indonesia and the Philippines. The company offers a variety of products including white bread, sweet/filled breads, cakes, chocolates, milk, and jam under the Sari Roti, Sari Kue, and Sari Choco brands. The company was founded in 1995 and is headquartered in Bekasi, Indonesia.

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Nippon Indosari Corpindo (ROTI IJ)

PT Nippon Indosari Corpindo (ROTI IJ) - Headwinds Dissipating

ROTI has launched several more affordable products to help drive its push into general trade whilst raw material prices remain under control....

Angus Mackintosh

Nippon Indosari Corpindo - FY24 Outlook: Focusing on Profitability

Post the tepid FY23 results, ROTI aims to focus on profitability in 2024 onward amid fewer catalysts for purchasing power in 2Q24 onward

BRI Danareksa Research

PT Nippon Indosari Corpindo (ROTI IJ) - Baking in Rising Expectations

The outlook for ROTI in 4Q and into FY2024 looks positive given a wider footprint and the potential for improvements in its return rate. Valuations...

Angus Mackintosh

PT Nippon Indosari Corpindo (ROTI IJ) - Increasingly Oven Ready

ROTI should continue to benefit from lower input costs together with a normalisation of its Genral Trade Business plus productivity is set to...

Angus Mackintosh

PT Nippon Indosari Corpindo (ROTI IJ) - Bring on the Baker

PT Nippon Indosari Corpindo (ROTI IJ) should see further positive growth in 2023, with the potential for improving margins as input costs subside....

Angus Mackintosh

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