AMRT - Improving productivity and efficiency through expansions

KBVS Update
Thursday, 24 July 2025

AMRT - Improving productivity and efficiency through expansions
(Maintain BUY, with TP IDR3,050)

Sumber Alfaria Trijaya (AMRT) will continue its stores’ and distribution centers’ (DC) expansions, with a IDR4.5 tn capex allocation for this year as the company still expects to have a total of 1,000 new stores with 2 new DCs in ‘25F, which mostly are going to be located at outside Java.

AMRT expects its same store sales growth (SSSG) to be around 5%-6% yoy, amidst the anticipation of softer growth qoq in 2Q25F and 3Q25F due to current economic conditions. Thus, we expect AMRT’ revenue to grow by 10.7% yoy in ‘25F as higher sales yoy on more store numbers and memberships.

Moreover, we still expect AMRT’ net profit to grow by 15.3% yoy in ‘25F and net margin to expand by 10bps yoy, on improved efficiency and costs management, despite our adjustments due to current economic conditions.

AMRT reported an 8.6% yoy SSSG in 1Q25 and its revenue grew 11.8% yoy/9.2% qoq on Ramadan festivities with higher active members (+27% yoy), which came in-line with ours’ (25%) and consensus’ (25.2%) expectation. All in all, AMRT’ net profit grew 9.5% yoy/30.1% qoq in 1Q25, with net margin expanded 50bps qoq, but sustained yoy at 3% as AMRT paid the mandatory religious holiday allowances to its employees on Ramadan festivities. Thus, AMRT’ 1Q25 earnings still came in-line with ours (20.4%) and cons’ (25.7%) expectation.

Maintain BUY on AMRT with adjusted TP of IDR3,050, which implies 34.9x ‘25F P/E or at +1stdev of its 5 years’ mean P/E. Currently, AMRT is trading at 25.8x ‘25F P/E or slightly below its 5 years’ mean P/E.

 Regards,
Andre Suntono – KBVS Research Team