The New Hot-Seller in India
Key Takeaways :
▪️HRTA’s 1Q23 revenue came in at IDR2.1tn (+16.7% QoQ/+53.8% YoY). Net margin was maintained above 3% which bore a net profit of IDR69.8tn (+47.8% QoQ/+37.8% YoY), reflecting a run-rate of 23% of FY23E's MNCS estimate.
▪️HRTA's new story involves two additional export contracts with eager tenders from India (Bright Metal Refiners and L P Commodities Pvt. Ltd.) in the form of 91,6% pure gold (22 karat) jewelleries.
▪️We project HRTA’s FY23E revenue stream to potentially get an additional IDR3.5tn boost on top of our previous estimate from the export deals alone.
▪️Aside from the commendable milestone achieved, investors can anticipate AGMS-approved final dividends of IDR12/share, implying a payout ratio of 21.8% or a potential yield of 2.1%.
▪️We reiterate BUY for HRTA IJ with a the same TP of IDR560 as our previous call (refer to: https://tinyurl.com/MNCS-HRTA-26Apr23), implying a PE of 7.5x/6.3x and PBV of 1.3x/1.1x for FY23E/FY24F. Risks to our call include: 1) delay/default of the export contracts, 2) gold/raw materials supply constraints and 3) higher-than-expected costs.
MNCS Research
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