MARK - 1Q25 missed, expecting downgrade

MARK - 1Q25 missed, expecting downgrade Mark Dynamics Indonesia (MARK) posted a slightly lower revenue of IDR203 bn in 1Q25 (-4.2% qoq, -4.2% yoy), falling short of both our estimate (19.3%) and cons. (18%), mainly due to weaker Agricultural Equipment sales (-36.4% qoq, -20.4% yoy) amid softer US rubber fertilizer exports and trade disruptions. The Glove Mould segment remained relatively stable, supported by customer diversification despite a lower China contribution. GPM improved to 52.2% (4Q24: 39.8%; 1Q24: 54.1%) thanks to better supply chain efficiency, including a shorter inventory cycle and reduced raw material cost pressure. Net profit reached IDR70 bn (+13.6% qoq, -3.1% yoy), also below our estimate (22.5%) and cons. (20.7%). Following recent management discussions and macro risks, we expect a ~15% downgrade to our 25F revenue forecast (prior TP: IDR1,250/sh, 14.3x 2025F PE). (Source : Company, KBVS Research)