ICBP - Resilient growth with strong innovation pipeline

KBVS update
Monday, 6 April 2026

ICBP – Strong FY25 earnings on one time gain
(Maintain BUY; TP IDR10,360)

* ICBP really held its ground in 2025. While 30% jump in earnings was partly thanks to some one-off gains, the core of the business is still looking solid. Even with the high raw material costs squeezing margins and various headwinds last year, the company managed to grow its revenue.

* It is no surprise that the noodle business is still doing the heavy lifting, but we also saw a nice result in dairy and seasonings toward 2025 as sales volumes picked up. We like its strategy in managing costs and prices, which kept profitability healthy even when things got tight.

* Looking ahead, ICBP’s focus on refreshing the brand and launching new products should keep the company competitive. These initiatives are key to maintaining ICBP's competitive edge in a shifting macro environment. With strong fundamentals and an adaptive strategy, we see an attractive valuation at current price.

* Maintain BUY with blended-based TP of IDR10,360 (11.3x ‘26F P/E), while currently trading at 8.2x ‘26F P/E, below its -2SD.

Regards,
Akhmad Nurcahyadi - KBVS Research team