7M24 SSSG Remained Solid; Signs of Spending Power Recovery
Key Takeaways :
▪️ 2Q24 net profit was booked at IDR160.9 bn (-21.4% QoQ/+11.7% YoY), noting that the lower QoQ result was due to seasonality. This brought 1H24 net profit to IDR365.8 bn, or soared by +20.9% YoY. This figure was in-line with our estimates at 48.9%.
▪️ ACES maintained a solid SSSG result in 7M24, which stood at +9.8% YTD, in-line with management guidance of ≥7% YTD. After experiencing negative YoY growths for three consecutive quarters (3Q23-1Q24), the 2Q24 GDP deflator managed to rebound by +0.9% YoY (exhibit 04). This could signal a recovery in consumer spending power.
▪️ We maintain a BUY recommendation for ACES with a higher TP of IDR900/share. Given that the 7M24 SSSG remains in-line with the guidance and that 1H24 net profit typically contributes less to the full-year figure (5Y mean: 42%), we have revised up our net profit projections for FY24E/FY25F by +14.0%/+19.7%.
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