Consider Re-rating due to Upbeat Prospect
Key Takeaways:
▪️ ACES posted a revenue of IDR1.9tn in 2Q23 (+13.5% QoQ/+15.0% YoY), translating into a 1H23’s revenue of IDR3.6tn (vs to IDR3.3tn in 1H22), marking a +9.9% YoY increase. Furthermore, net profit in 2Q23 amounted to IDR144.1bn (-9.0% QoQ/+62.1% YoY), resulting in a 1H23’s net profit of IDR302.4bn (+24.8% YoY).
▪️ We perceive ACES’s expansion into tier 2 & 3 cities as having positive prospects. Notably, ex-Java marked an SSSG of +14.8%, while outside Jakarta experienced +10.6% in June 2023.
▪️ In late 1Q23, ACES has aggressively launched "#BisaKejadian" (#CouldHappen) campaign to reinforce brand perception. In our view, this campaign approach expands ACES' market segment beyond just baby boomers to millennials.
▪️ ACES took advantage of the Independence Day momentum by offering a 17% discount and coupons up to IDR450k with T&C. Given the recovery in purchasing power, shifting consumer priorities, and the growing importance of a healthy lifestyle, we believe this approach is appropriate.
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