INDF - FY23 PATMI up by 28.12%to IDR8.14 tn

INDF - FY23 PATMI up by 28.12%to IDR8.14 tn Indofood Sukses Makmur (INDF) managed to record significant net profit growth throughout 2023 up to double digits. Profit for the year attributable to the owners of the parent entity INDF reached IDR8.14 tn in. This increased 28.12% yoy from IDR6.35 tn in FY22. The growth in net profit is in line with the increase in net sales of the Indofood Group. INDF's net sales reach IDR111.7 tn in or an increase of 0.79% yoy from IDR110.83 tn. In detail, sales of branded consumer products rose 5.12% yoy to IDR68.59 tn. Sales from the Bogasari segment contributed IDR30.41 tn during 2023. Then sales from the agribusiness segment reached IDR15.97 tn and the distribution segment reached IDR6.95 tn. (Source: Kontan) Comment : In all, despite the double-digit growth, FY23 results came in below and ours and street anticipated. We believe, Agribusiness and Bogasari segment will continue to become as INDF’s ‘24F main threat. We will revisit our model to adjust several assumptions to accommodate below than expected FY23 results. Yet, as the global player with its strong domestic presence we believe INDF remain deserve a BUY call. Our latest BUY call on the stock is using SOTP methodology with a fair price of IDR8,020 (7.1x ‘24F P/E), while it is currently trading at 5.7 ‘24F P/E, or below -1SD of 6.7x ‘24F P/E.