KLBF - Allocating capex IDR1 tn

Kalbe Farma (KLBF) continuously expanding market share worldwide. To support the plan, the company has allocated capex amounting IDR1 tn. Despite making only small portion to total revenue, it is expected that the joint venture company could smoothen raw material supply chain and will strengthen KLBF positioned ing forward. (Source : Kontan). Comment: We like KLBF continuing effort to penetrate and developglobal market. This could overall help earnings growth to remain arrive at double digit level. Post commercially operated and raw material supply chain will get more efficient, margin should expanded and brought RoE to record higher figure year-on-year which provide more ample room for better dividend yield.