AMRT - Expansion continues in ‘26F, after solid FY25

KBVS Update
Wednesday, 15 April 2026

AMRT - Expansion continues in '26F, after solid FY25
(BUY, with adjusted TP IDR2,100)

* Sumber Alfaria Trijaya (AMRT) plans to open 1,000 new stores (net) in ‘26F and to further increase its online sales via Alfagift by continuing to expand its member base. Although with the Kopdes program, we still believe AMRT will be able to open new stores in other areas in coordination with governments. Thus, we adjusted our AMRT ‘26F revenue and earnings to incorporate its solid FY25 and strategy in ‘26F. All in all, we still expect AMRT’ revenue and earnings to grow by 9.1% yoy and 10.4% yoy, respectively in ‘26F on higher sales, better product mix, better costs management and higher other income.  

* AMRT' earnings had significant bounce back in 4Q25 as its earnings grew 46.3% yoy/154.2% qoq on higher sales, better product mix, better costs management and higher other income (+18% yoy/+2.4% qoq). As a result, AMRT’ earnings grew 8.3% yoy in FY25, which came above ours (104.6%) and in-line with cons’ (96.8%) expectation.      

* AMRT’ revenue grew 7.5% yoy/5.2% qoq in 4Q25 on higher sales amidst festivities with better product mix. AMRT’ revenue from food/groceries and non-food segment grew 9% yoy/6.8% qoq and 4% yoy/1.5% qoq, respectively in 4Q25. Thus, AMRT’ revenue grew 7.2% yoy in FY25, which came in-line with ours (96.8%) and cons’ (97.4%) expectation.

* Impressive margin expansion by AMRT in 4Q25 as its gross, EBIT and net margin expanded to 23.1% (+150bps yoy/+250bps qoq), 4.1% (+170bps yoy/+320bps qoq) and 3.4% (+90bps yoy/+200bps qoq), respectively. All in all, AMRT was able to maintain its net margin at 2.7% in FY25, despite a drag from its 3Q25 performance due to lack of catalysts.

* Maintain BUY on AMRT with adjusted TP of IDR 2,100/share, which implies 23.2x ‘26F P/E. Currently, AMRT is trading at 16.9x ‘26F P/E or at -1.25stdev of its 5 years’ mean P/E.

Regards,
Andre Suntono - KBVS Research team