Rock solid Bottomline Driven from Margin Expansion
Key Takeaways:
• In 9M22, AKRA IJ booked an impressive revenue growth of 100.5% YoY to IDR34.6 tn. Trading and distribution segment remained to be the major force of the surging top-line with IDR33.1 tn (+110.2% YoY) amid the commodity boom.
• The company recorded its petroleum revenue to be IDR26.8 tn (+114.1% YoY), followed by its rising ASP to >IDR12,000/l in 9M22 (vs ~IDR8,000/l in 9M21). Moreover, its petroleum volume in 9M22 was posted at ~2.0 bn KL (vs ~1.8 bn KL in 9M21) with the company targeted for its annual petroleum volume of ~2.7-2.8 bn KL by FY22E.
• AKRA IJ had also opened 33 AKR-BP fuel stations by 9M22 with the company targeted to open another 7 new service stations by FY22E, and by FY30F, AKRA projected to have 350 BP-AKR fuel stations.
• Furthermore, AKRA booked its chemical revenue in 9M22 to IDR6.2 tn (+95.0% YoY) where the company also recorded increase in its ASP to >IDR5,000/kg (vs ~IDR2,750/kg in 9M21).
• In 9M22, AKRA reported gross profit of IDR2.7 bn (+72.4% YoY). However, its GPM was recorded a decrease to 7.9% (vs 9.1% in 9M21) due to higher COGS by 103.3% YoY to IDR31.9 tn. Quarterly, AKRA's GPM was recorded a rise at 8.8% in 3Q22 (vs 7.3%/7.4% in 2Q22/3Q21).
• EBITDA was booked at IDR2.25 tn in 9M22 (+64.0% YoY). Thus, this resulted in an EBITDA margin of 6.5% (vs 8.0% in 9M21). Meanwhile, in 3Q22, the margin was recorded at 6.8% (vs 6.3%/6.2% in 2Q22/3Q21).
• Net income was reported at IDR1.56 tn (+96.2% YoY). As a result, NPM was recorded at 4.5% in 9M22, slightly below 9M21 margin of 4.6%. In addition, quarterly in 3Q22, NPM was recorded at 4.9% (vs 4.4%/3.8% in 2Q22/3Q21).
• By 9M22, AKRA booked its land sales revenue of IDR47.2 bn (-87.1% YoY), while its utilities and land rental revenues were recorded at IDR29.1 bn (+15.8% YoY) and IDR210.1 bn (+19.1% YoY), respectively. However, the management expected to gain IDR900-1,100 bn from its land sales, as well as land lease and utilities income by FY22E after the company had successfully achieved sales target of 40 Ha.
• We recommend BUY with TP of IDR1,750 (+22.8% upside), implying FY22E EV/EBITDA of 11.6x.
MNCS Research Team
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