KLBF - Further growth in ‘25F on better product mix and costs management

KBVS Update  
Friday, 13 June 2025

KLBF - Further growth on better product mix and costs management
(Maintain BUY; with TP: IDR1,740)

We slightly adjusted up our ‘25F revenue (+0.1% from prior) for KLBF as per our anticipation of higher Covid-19 cases in 2Q25F and further. Thus, we still expect KLBF’ revenue to grow by 10.4% yoy in ‘25F on higher products’ ASP with better sales volume. On the other hand, we slightly tweaked down our ‘25F earnings (-2% from prior) for KLBF as per our anticipation on a higher A&P exp, to boost sales amidst current economic condition. In all, we still expect KLBF’ earnings to grow by 10.7% in ‘25F and its net margin to expand by 10bps yoy, on higher sales with better products mix and costs management.

KLBF’ earnings grew 8.2% yoy/24.9% qoq in 1Q25 on higher sales during Ramadan festivities, with better product mix and costs management. As a result, KLBF’ 1Q25 earnings came above ours’ (29.4%) and cons’ (30.3%) expectation.

KLBF’ reported softer revenue growth in 1Q25 (+5.8% yoy/+5.4% qoq) vs 1Q24’ revenue growth (+6.3% yoy/+6% qoq) due to soft sales of its domestic market (+4.1% yoy/+5.1% qoq) amidst Indonesia’ current economic condition. Fortunately, KLBF’ export sales grew 40.9% yoy/11.6% qoq. Thus, KLBF’ 1Q25 revenue still came in-line with ours’ (24.6%) and cons’ (25.3%) expectation.

All in all, KLBF’ gross, EBIT and net margin expanded to 41.6% (+190b yoy/+60bps qoq), 15.6% (+100bps yoy/+170bps yoy) and 12.2% (+30bps yoy/+190bps qoq), respectively in 1Q25, on higher sales with better product mix and costs management. 

Maintain BUY on KLBF with TP of IDR 1,740/share, which implies 22.7x ‘25F P/E. Currently, KLBF is trading at 20.1x ‘25F P/E or slightly above -1stdev of its 5 years’ mean P/E.

Regards,
Andre Suntono – KBVS Research Team