## MIKA, another strong result

Current, target price Rp 2,603, 4,376 (+68%)

April 24th, 2021

1 minute read

Sales, above 1 trillion rupiah again

Cashflow, back to positive

1 minute read

Sales, above 1 trillion rupiah again

- Sales increased by 9% in the first quarter to 1,204 billion rupiah, which is -1% compared to our forecast.
- This is after a 26% increase in the fourth quarter & brings the quarterly average growth to 14%.
- We predict average growth of 4% a quarter in this next 12 months which will bring sales to 1,373 billion rupiah by the first quarter of 2022.

Cashflow, back to positive

- Cashflow was positive again 395 billion rupiah in the first quarter after -256 billion rupiah in the fourth quarter.
- Average quarterly cashflow is now positive 150 billion rupiah.
- We use the latest quarter investment spending of -83 billion rupiah, which with higher sales, gives a higher average quarterly cashflow of 349 billion rupiah in this next 12 months.

## Sales above one trillion for a second quarter, strong margins, strong cashflow, back in net cash, a 2.6% yield & a higher target price...

Balance sheet, back to net cash

Profit, strong margins

Value, a 2.6% yield

- With positive cashflow, the net leverage of cash minus total liabilities was +133 billion rupiah in the first quarter from -150 billion rupiah in the fourth quarter & -23 billion rupiah a year ago.
- With our forecast higher cashflow & assuming a dividend payout of -1,075 billion rupiah...
- ...net cash will be up to +454 billion rupiah in 12 months time.

Profit, strong margins

- Net profit was higher at 374 billion rupiah in the first quarter from 353 billion rupiah in the fourth quarter.
- The cash cost ratio of net profit add back non cash costs minus sales as a percent of sales was stable at -65%.
- We use x costs, to predict a higher next 12 months profit of 1,535 billion rupiah.

Value, a 2.6% yield

- MIKA cumulative net capital is at +2,120 billion rupiah in the last six years.
- At the current market value of 41,432 billion rupiah, based on forecasts it’s 13.51X capital paid, 8.40X sales, 5.56X assets, 6.22X equity, with a 23.0% profitability & a 2.6% yield.
- Our free cashflow forecast is 1,593 billion rupiah. At 1.6% with a 0.7X adjustment, gives a 68% higher target price of 4,376 rupiah.