AMRT - Solid 1Q26 earnings, came above on festivities

KBVS Update
Thursday, 20 May 2026

AMRT - Solid 1Q26 earnings, came above on festivities
(BUY, with TP IDR2,100)

* Sumber Alfaria Trijaya' (AMRT) strategies for '26F is still intact. Thus, we did not make any adjustments to our ‘26F revenue and earnings for AMRT as we already anticipated a possibility of weaker performance in 2Q26F and 3Q26F on fewer catalysts and softer consumer spending amidst a challenging macroeconomic backdrop on higher geopolitical tensions. All in all, we still expect AMRT’ revenue and earnings to grow by 9.1% yoy and 10.4% yoy, respectively in ‘26F and to maintain a net margin of 2.7% due to higher sales, better product mix, better costs management and higher other income.

* AMRT earnings reached IDR1.08 tn (+10.3% yoy/-1.9% qoq) in 1Q26 on higher sales and other income amidst festivities with better cost management yoy, which came above ours (28.6%) and cons’ (27.7%) expectation.

* Thanks to festive spending and improved consumer purchasing power, AMRT’ revenue grew by 7.5% yoy/9.2% qoq to IDR35.2 tn in 1Q26. Moreover, AMRT’ revenue from food/groceries and non food segment grew 6.4% yoy/10.5% qoq and 10.5% yoy/6.2% qoq, respectively in 1Q26. Thus, AMRT' 1Q26 revenue came slightly above ours’ and cons’ expectations at 25.5%, respectively.

* AMRT’ gross profit still grew 7%yoy/2.9% qoq in 1Q26 due to higher sales amidst festivities. On operational, AMRT’ EBIT reached IDR1.14 tn (+15.3% yoy/-13.3% qoq) in 1Q26, despite higher opex as the company gave THR to its employees. While, AMRT’ other income reached IDR339 bn (+12.6% yoy/-3.8% qoq) in 1Q26. All in all, AMRT’ net margin still reached 3.1% (+10bps yoy/-30bps qoq) in 1Q26.  

* Maintain BUY on AMRT with adjusted TP of IDR 2,100/share, which implies 23.2x ‘26F P/E. Currently, AMRT is trading at 15.9x ‘26F P/E or at -1.5stdev of its 5 years’ mean P/E.

Regards,
Andre Suntono - KBVS Research team