Unilever Indonesia (UNVR) shares have fallen 33.33% since the start of the year, analysts say

Reporter: Sugeng Adji Soenarso | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Shares of PT Unilever Indonesia Tbk (UNVR) is still depressed since the beginning of the year. Quoting RTI, UNVR shares have fallen 33.33% year to date (ytd) to the level of Rp 4,900 per share on Friday (19/6) yesterday.

Samuel Sekuritas analyst Nasrullah Putra Sulaeman said that UNVR’s stock price movement declined because investors currently tend to dislike consumer stocks.

According to him, this is because the growth offered is less attractive. “In addition, the increase in soft commodity prices is also a concern for investors because UNVR’s margins are in danger of being cut,” he told kontan.co.id, Thursday (17/6).

Nasrullah assessed that UNVR shares could move up if the economic recovery was above expectations. Thus making UNVR sales increase.

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Therefore, currently Samuel Sekuritas has lowered UNVR’s projected net profit to Rp 7.2 trillion, or 4.4% lower than the initial projection of Rp 7.5 trillion.

“The projection is lowered because we are more conservative about rising prices for soft commodities such as CPO, which is the main raw material for the Home and Personal Care segment,” he explained.

That way, this year’s net profit is projected to grow 1.1 percent compared to last year’s realization of Rp 7.16 trillion.

In terms of revenue, his party assesses that UNVR can still record sales growth of 3.9% to Rp 44.6 trillion.

This growth, according to him, is due to the food & refreshment segment that still has the potential to grow due to the economic recovery, especially in the hotel, restaurant and catering (horeca) sector. “We recommend holding with a target price of 5,900,” he added.