PROFINDO EQUITY RESEARCH REPORT
PT UNILEVER INDONESIA TBK
June 01, 2015
GROWTH WITH CARE
Analyst: Michael Dickension | michael.dickension@profindo.com
PT. Unilever Indonesia was established in 1993 and listed in Indonesia Stock
Exchange in 1982. Unilever Indonesia is one of the leading suppliers as well as
the most profitable of fast moving consumer goods (FMCG) in Indonesia. The
company’s product range, which covers both Home & Personal Care and
Foods & Refreshment, incorporates some of the world’s most trusted brands,
including Wall’s, Lifebuoy, Vaseline, Pepsodent, and many more (see the
Appendix A). They are all designed to help customers get more out of their
everyday lives.
NEUTRAL
TP 38,500 / Share
(12.5% Downside)
Figure : Company Information
Figure : Key Growth 1Q14 vs 1Q15
Figure: Share Price Performance UNVR vs IHSG
Two Strong Diversified Portfolio
Unilever has 39 brands, supported by 8 owned factories in Cikarang and
Surabaya with more than 600 distributors. Home & Personal Care portfolio
consists of 26 brands and contributes IDR 24.6 trillion or 71% of total sales
2014. Home & Personal Care division, supported by all its products has
continued to deliver great results, growing above the market. As for Foods &
Refreshment division, the 13 brands are offering their consumers with high
quality, nutritious, convenient and delicious food. This portfolio contributes
IDR 9.9 trillion or 29% of total sales 2014 and increasing year by year (see the
Appendix B).
Financial Overview
Tough Economic and financial turbulence with continued competitive
intensity made 2015 one of the most challenging years that the industry and
Unilever have faced for some time. The weakening IDR has worsen the
company’s situation. However, Unilever’s business model and strategy
proved robust, delivering a competitive performance with underlying sales
growth above the market and solid margin expansion.
1Q 2015, Unilever’s consolidated net sales grow 7.89% above YoY to Rp. 9.4
trillion. Moreover, Unilever’s gross profit managed to register a double digit
growth of 14.17% which amounted to Rp. 4,803 trillion, compared to the
same period of 2014 which was 8,42%. Furthermore, Unilever’s consolidated
operating expenses had increased by 16.1% and it amounted to 2.7 trillion
which was contributed by the advertising & marketing research and services
fee & royalty. Thus, Unilever’s consolidated operating profit and net profit
increased only by 12.2% and 17%, respectively.
Value for What You Pay
Unilever has two different portfolios, strong brand equity and an in-depth
understanding of the market that has been honed over eight decades of
serving Indonesia consumers. No matter who you are, or where in the world
you are, the chances are that Unilever’s products are a familiar part of your
daily routine. Every day, around the world, people reach for Unilever
products. Unilever products can be easily found anywhere in retail shops,
minimarkets, hypermarkets in Indonesia. As for the financial sideview,
Unilever always deliver strong performance which shows that the
fundamental of the company is really formidable (see the Appendix C, D and
E). We expect UNVR will post steady growth every year due to their powerful
brands, everlasting innovation and best quality products. By using relative
valution method, we estimated the fair value of equity should be at IDR
38,500 / share (12.5% downside potential), implies FY15F of 47.2x.
Therefore, our recommendation for UNVR is NEUTRAL.
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PROFINDO EQUITY RESEARCH REPORT
PT UNILEVER INDONESIA TBK
Appendix A : Company Shareholders and Portfolio
Appendix B : Portfolio Contributions for the Company
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PT UNILEVER INDONESIA TBK
Appendix C. Balance Sheet
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PT UNILEVER INDONESIA TBK
Appendix D. Income Statement
Appendix E. Ratios
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PROFINDO EQUITY RESEARCH REPORT
PT UNILEVER INDONESIA TBK
KANTOR PUSAT
KANTOR CABANG BANDUNG
http://www.profindo.com
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Jl. Kuningan Mulia, Kav. 9C,
Guntur Setiabudi
Jakarta Selatan 12980
Phone : +62 21 8378 0888
Fax
: +62 21 8378 0889
Jl. Sunda No. 50B
Bandung, Jawa Barat
Phone : +62 22 420 2678
Fax
: +62 22 420 2676
EMAIL :
bayu.cahyadi@profindo.com
michael.dickension@profindo.com
DISCLAIMER
This research report is prepared by PT PROFINDO INTERNATIONAL SECURITIES for information purposes only
and is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for
securities or other financial instruments. The report has been prepared without regard to individual financial
circumstance, need or objective of person to receive it. The securities discussed in this report may not be
suitable for all investors. The appropriateness of any particular investment or strategy whether opined on or
referred to in this report or otherwise will depend on an investor’s individual circumstance and objective and
should be independently evaluated and confirmed by such investor, and, if appropriate, with his professional
advisers independently before adoption or implementation (either as is or varied).
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