1H24: Still In-line with Improvement Margin
Key Takeaways:
▪️MIKA recorded a revenue of IDR2.4tn in 1H24 (+19.7% YoY), reflecting 51.0%/50.2% of MNCS/Consensus estimation for FY24E. The gross profit spiked by +29.7% YoY to IDR2.1tn, achieving to a higher GPM of 53.7% (vs 49.6% in 1H23). Following this, the operating profit also rose by +34.7% YoY to IDR754.7bn, reflecting 52.4%/51.5% MNCS/Consensus target. Furthermore, the bottom-line strengthened by +32.5% YoY, reaching IDR600.6bn, which was slightly above the expectations at 55.5%/52.5% from MNCS/Consensus projections for FY24E. This resulted in a 237bps increase in the NPM of 24.5% in 1H24.
▪️MIKA successfully scaled up its non-JKN patients to 84.9% in 1H24 (vs 82.0% in 1H23), in line with the focus to expand the units of Mitra Keluarga hospitals. As of 1H24, MIKA has absorbed IDR379bn capex from the target of IDR1tn in FY24E. The capex was majorly utilized for land rights and hospitals constructions.
▪️We recommend a BUY rating for MIKA at a TP: IDR3,500, which implies PE and EV/EBITDA of 42.3x/25.9x in FY24E and 37.5x/23.1x in FY25F. Its stable financial position and strong brand positioning should serve as favorable growth drivers.
Disclaimer On
