KLBF - Withstanding cost pressures in 1H26F

KBVS Update
Thursday, 23 July 2026

KLBF - Withstanding Cost Pressures in 1H26F
(Maintain BUY, with adjusted TP IDR1,000)

* Kalbe Farma (KLBF) has anticipated higher costs in 1Q26, 2Q26F and 1H26F. Thus, we adjusted our ‘26F revenue (-2.4% from previous) and earnings (-3.0% from previous) for KLBF. All in all, still expect KLBF' revenue and net profit to grow 10.4% yoy and 7.1% yoy, respectively in ‘26F on higher ASP with improved operational efficiency amidst easing geopolitical risks and the IDR’ appreciation vs USD & RMB, in 2H26F.

* Expect KLBF’ revenue to grow by 9.9% yoy in 1H26F, or around 48.1% of our ‘26F revenue (in-line). In 1Q26, KLBF’ revenue grew 10.1% yoy/3.7% qoq, which came in-line with ours (24.2%) but above cons’ (25.6%) expectation.

* All in all, we still expect KLBF’ 1H26F net profit to reach IDR1.92 tn (-2.8% yoy) or around 48.9% of our ‘26F net profit. In 1Q26, KLBF’ net profit reached IDR1.03 tn (-4.4% yoy/-0.5% qoq) in 1Q26, which still came above ours (25.4%) and cons’ (26.8%) expectation.

* Maintain BUY on KLBF with adjusted TP of IDR 1,000/share (+36.9% upside), which implies 11.9x ‘26 P/E. KLBF current share price at IDR730 (-39.4% ytd) or trades at 8.7x ‘26F P/E or at -2stdev of its 5 years’ mean P/E, is already inexpensive and a good entry point for investors.

Regards,
Andre Suntono - KBVS Research team