JAKARTA – PT Sumber Alfaria Trijaya Tbk (AMRT) has seen positive momentum in its stock performance, driven by revenue growth projections for 2024 and 2025, expected to reach double digits.

According to research by PT Ina Sekuritas Indonesia, AMRT’s revenue for the Full Year (FY) 2024 is projected to grow 10.9% year-on-year (YoY), reaching IDR 118.5 trillion. Meanwhile, FY 2025 revenue is expected to grow by 12% YoY to IDR 132.8 trillion.

This growth projection aligns with AMRT’s aggressive store network expansion strategy. The retail company has achieved an average annual growth rate (CAGR) of 8.4% in its store network from 2019 to 2023.

“With faster rate of average annual growth of 11.2% outside Java,” added Ina Sekuritas.

By September (9M) 2024, AMRT operates 47 warehouses, 20 depots, and 18 hub stores. This expansion is expected to improve the company’s supply chain efficiency, which will positively impact future net profit margins.

Taking all these factors into consideration, Ina Sekuritas has given a BUY recommendation for AMRT’s stock. They have set a target price of IDR 3,330 for AMRT.

However, Ina Sekuritas notes that weak consumer purchasing power and macroeconomic uncertainty may still pressure AMRT’s performance in the future, though these challenges are expected to be short-term in nature. (KR/ZH)