Jakarta, CNBC Indonesia – The share price of a consumer issuer owned by the Salim Group, namely PT Indofood CBP Sukses Makmur Tbk (ICBP), has quietly begun to move up.
After recording a stock price correction in the first quarter, slowly but surely the stock of the most popular instant noodle producer, Indomie, has started an uptrend since the third week of April.
Trading data noted, ICBP’s market capitalization value jumped 10.23% in a week. The return generated from ICBP’s capital gains even reached 14.24% in the last month.
For a stock with a large capitalization (big cap) like ICBP, an appreciation of more than 10% in a month is considered ‘okay’.
Moreover, the sentiment in the market is actually not very supportive. As a producer of instant noodles and other foodstuffs, ICBP’s business has also been affected by Russia’s war with Ukraine.
The global food crisis that made wheat prices soar became a threat to the business and profit margins of this instant noodle producer.
However, it seems that the correction that occurred was actually used by investors to accumulate ICBP shares. From the side fund flowforeign investors continue to buy ICBP shares.
In the past month, foreigners have been observed to post net buying (net buy) in the regular market of Rp. 159 billion.
Indeed, if we look at last year’s financial performance, ICBP’s net profit decreased by 3% on an annual basis. Even though from the side top lineICBP’s revenue still grew by almost 22%.
However, signs of improvement in ICBP’s financial performance began to appear in the first quarter of 2022. ICBP successfully recorded revenue growth of 21.2% on a quarterly basis and 13.9% on an annual basis.
Revenues from almost all of ICBP’s business segments recorded double-digit growth ranging from instant noodles, milk, snacks, nutritious foods to cooking spices.
Although in terms of operating profit margin, it tends to decrease compared to the fourth quarter of 2021 and the first quarter of 2021, the loss on foreign exchange recorded by the company has decreased.
As of the first quarter of 2022, the net loss from foreign exchange recorded by ICBP was Rp 189 billion. This is inversely proportional to the first quarter of 2021 which recorded a loss of up to Rp 853 billion.
The decrease in losses due to the exchange rate also boosted bottom line ICBP thus made its net profit increase 11.8% on an annual basis to Rp 1.94 trillion.
The improvement in ICBP’s financial condition has also become a positive catalyst for the movement of its share price which had downtrend.
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