MARK - 2Q25 missed

MARK - 2Q25 missed Mark Dynamics Indonesia (MARK) posted a lower revenue of IDR 173bn in 2Q25 (-12.4% qoq, -27% yoy), falling short of both our estimate (43.9%) and cons. (38.4%). The decline was mainly driven by the Glove Mould segment (83.5% of revenue) dropping -18% qoq and -30.5% yoy, likely due to slower manufacturing recovery. Assuming the company maintained its utilization rate at 75% with a quarterly capacity of 4,8mn pcs, this implies ASP dropped -18% qoq and -33.9% yoy. As expected, COGS for Glove Mould fell -17% qoq and -5.1% yoy, but GPM remained low at 54.2% (vs. 1Q25: 64.8%, 2Q24: 66.5%). In addition, the House Equipment segment recorded a slight gross loss of -1.3%. Net profit came in at IDR 61bn (-12.5% qoq, -18.3% yoy), also below our estimate (44.9%) and cons. (41.8%). Our TP remains at IDR 900/sh, implying 11.7x 2025F PE, close to its 5-year average -1SD of 14.8x. (Source : Company, KBVS Research)