New Partnership Opportunities, New Products
Key Takeaways :
▪️HRTA has taken the step further to increase their exposure to the global jewellery market by participating in Jewellery & Gem WORLD Hong Kong 2023 (JGW 2023) in 20 - 24 Sep, 2023, one of largest jewellery expo globally, attended by over 54k international visitors and 3.4k exhibitors.
▪️We believe HRTA's increased global exposure to be a positive catalyst going forward as it had in 1Q23 with the Indian export deal debut, attracting a hefty 9,729% YTD of foreign ownership increase.
▪️The company launched ARDORE, a new jewellery product line that includes a variety of rings, earings and necklaces targeted towards the millenial cohort accross the low-to-high segment, a strategy to expand their margin potential.
▪️HRTA also launched a new sharia pawn services (Rahn) segment which has the potential to raise the company’s brand awareness, demonstrating their devotion towards the sharia market segment.
▪️We reiterate BUY for HRTA IJ, maintaining a TP of IDR560, implying a PE of 7.6x/6.0x and PBV of 1.3x/1.1x for FY23E/FY24F. While the company is set to boost future growth through abroad market expansions, it would concurrently increase the exposure to USD’s volatility as the gold's price reference currency.
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