Indofood CBP Sukses (ICBP) Becomes the Main Pillar of Salim Group's Performance

CORPORATE STRATEGIC - JAKARTA. The performance of the Salim Group is still supported by the food segment. This fact is recorded from the performance of several issuers of one of the richest business conglomerates in Indonesia.

For example, food producer PT Indofood Sukses Makmur Tbk (INDF) recorded a profit of IDR 8.14 trillion in 2023. This achievement increased by 28.12% from IDR 6.35 trillion in 2022.

Meanwhile, PT Indofood CBP Sukses Makmur Tbk (ICBP) also recorded a profit of IDR 6.99 trillion in 2023. This achievement was boosted by 52.39% from the 2022 profit of IDR 4.58 trillion.

However, the sales of the Salim Group's palm oil issuer are sluggish. PT London Sumatra Indonesia Tbk (LSIP) booked a profit of IDR 762 billion in 2023.

This profit fell by 26% from 2022, which was IDR 1.03 trillion.

Similarly, PT Salim Ivomas Pratama Tbk (SIMP) recorded a 39% decrease in net profit to IDR 736 billion throughout 2023.

Head of Investment Nawasena Abhipraya Investama, Kiswoyo Adi Joe sees, the performance of Salim Group issuers is still supported by ICBP.

"Revenue from Indomie also supports INDF's performance in 2023," he told KONTAN, Tuesday (26/3).

On the other hand, the poor performance of LSIP and SIMP according to Kiswoyo is purely due to the turmoil of global crude palm oil (CPO) prices.

As a result, it burdens the performance of the Salim Group. But this year, he predicts the performance of Salim Group issuers can be better.

One of the drivers is the high consumption of the Indonesian people in the election year. Plus, palm oil prices are starting to improve this year.

His recommendation is to buy INDF and ICBP with targets at IDR 7,000 and IDR 12,500. LSIP and SIMP are recommended to buy on weakness with targets at IDR 1,600 and IDR 800.

Equity Analyst Kanaka Hita Solvera, William Wibowo is wait and see for ICBP.