Company Update

21 November 2022

ACES IJ - MNC Sekuritas Equity Report November 21, 2022

Oct-2022 SSSG Stayed Up in Positive Territory
Key Takeaways
• ACES recorded monthly sales of IDR517bn in Oct-2022 (-8.0% MoM) and cumulative 10M22 sales of Rp5.4tn (+3.5% YoY). Blended SSSG stood at 1.8% YoY in 10M22 cumulatively.
• We expect sales slightly improve in Dec-2022 due to festive and year-end holiday seasonality, which will lead to higher demand for home decor, gifts for kids, and travel necessities.
• ACES opened 7 new outlets in 3Q22, equivalent to +14.4k sqm, bringing the total outlets in 9M22 to 228 units (569k sqm). 
• The outlet expansion to tiers 2 & 3 cities (ex-Jakarta) with a smaller format is quite promising, with the potential for generating its market share as well as increasing brand awareness to position itself over peers.
• ACES has successfully developed an integrated e-commerce platform through ruparupa(dot)com and MISS ACE. We believe this is part of a successful membership strategy that certainly increases member basket size.
• We recommend BUY with a target price of IDR650, implying PE/PBV of 12.8x/1.8x in FY23E. We anticipate a single- digit SSSG (+6.2%) amid high inflationary pressure. 

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