ERAA - Expansion continues with positive SSSG in 5M26

KBVS Update
Tuesday, 07 July 2026

ERAA - Expansion Continues With Positive SSSG in 5M26
(BUY, with TP IDR500)

* Erajaya Swasembada’ (ERAA) SSSG remained positive in 5M26 (+7.2% yoy). ERAA will surely continue its store and membership expansions in '26F. We maintain our ‘26F revenue and earnings for ERAA at IDR83.8 tn (+9.3% yoy) and IDR1.31 tn (+9.3% yoy).      

* We expect ERAA’ revenue to reach IDR41.1 tn (+17.1% yoy) in 1H26F, or around 49% of our ‘26F revenue (in-line). In 1Q26, ERAA’ revenue reached IDR22.4 tn (+41.1% yoy/-7.5% qoq) in 1Q26 on more stores and members amidst festivities, which came above ours’ (26.8%) and cons’ (27.7%) expectations.  

* All in all, we expect ERAA’ 1H26F earnings and net margin to reach IDR784 bn (+38% yoy) and 1.9% (+30bps yoy) on higher sales and better cost management, or ~60% of our ‘26F earnings. In 1Q26, ERAA’ earnings and net margin reached IDR453 bn (+122.7% yoy/+10.3% qoq) and 2% (+70bps yoy/+30bps qoq), which came above ours (34.6%) and cons’ (34.7%).

* Maintain BUY on ERAA with TP of IDR 500/share, which implies 6.1x ‘26F P/E. Currently, ERAA is trading at 4.5x ‘26F P/E or at its -1.5stdev of its 5 years’ mean P/E.

Regards,
Andre Suntono - KBVS Research team