SIDO- 6M25

Earnings Update 6M25

Overview

SIDO is truly a national heritage. Representing the fine blend of the traditional and the modern ways of the herbal medicine industry, it is now become one of the few survivors in the niche industry. It has a strong dominance over the domestic market while at the same time building up a solid foundation to expand farther globally. Aside from its solid financial strength with zero debts, SIDO has been one of those dividend-generating machines, rewarding its shareholders on a consistent basis. As of the end of June 2025, SIDO’s overall performance has slightly contracted on the back of weak performances from its segments. Still, it is likely that performance will improve in H2/25, resulting in positive growth at both top and bottom lines for FY25.

Financial Highlights

Sales in 6M25 have declined slightly by 4% (yoy) whereas core net profit slipped by 1% (yoy) vs. 6M24. On the balance sheet, SIDO’s total liabilities have shrunk 31% (ytd), driven by notable declines in trade payables, accrued expenses and current portion of lease liabilities. Elsewhere, both total assets and core equity have dropped by 7% (ytd) and 4% (ytd), respectively at the end of June 2025 vs. the end of FY24. Based on its FY24 performance, SIDO has awarded its shareholders with Rp39 per share worth of DPS or representing 99% of the Company’s net profit in FY24 - up from Rp30 per share paid in prior year.

Based on SIDO’s TTM core net profit in 6M25, the Company’s ROA (TTM) and ROE (TTM) has ticked higher to 31.9% and 34.9%, respectively. In addition, its core operating profit and core net profit margins have slightly improved to 39.7% and 32.8%, despite its gross profit margin slipped slightly to 56.9% in 6M25 vs. 6M24.

Valuation

Better performance in Q2/25 has boosted 6M25 sales and core net profit, maintaining a firm chance to record another growth on both top and bottom lines this year. Nevertheless, SIDO’s share price is currently still hovering below its average price in FY24. Currently, at Rp540, SIDO is trading at PRR (TTM), PER (TTM), and PBV (MRQ) of 4.2x, 13.8x, and 4.8x, respectively. Based on our valuation model involving price multiples, DCF and DDM, the blended target price is Rp551 per share, therefore we can consider it as relatively fairly valued. The target price implies PRR, PER and PBV of 4.3x, 14.1x and 4.9x, respectively based on TTM and MRQ figures. On the risk side, SIDO’s biggest risk is on the domestic economic outlook.