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ISSUER NEWS - JAKARTA. The Indonesia Stock Exchange (IDX) is once again conducting a major evaluation on several stock indices, one of which is the IDX High Dividend 20. PT Kalbe Farma Tbk (KLBF) is the only health issuer included in this index.
There are seven stocks included for the constituent period effective from February 5, 2024, until February 4, 2025.
They are PT Barito Pacific Tbk (BRPT), PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Indah Kiat Pulp & Paper Tbk (INKP), PT Kalbe Farma Tbk (KLBF), PT Semen Indonesia (Persero) Tbk (SMGR), PT Chandra Asri Pacific Tbk (TPIA), and PT Unilever Indonesia Tbk (UNVR).
Out of these seven stocks, KLBF is the only one from a health issuer included in the IDX High Dividend 20. Currently, the dividend yield of KLBF is 2.53%.
Abdul Azis Setyo Wibowo, an analyst at Kiwoom Securities Indonesia, stated that KLBF is not yet eligible to be included in the IDX High Dividend due to its relatively low dividend yield.
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"For KLBF stock at the moment, we still do not see any sentiment that can improve KLBF's financial performance, especially as the fluctuation of the exchange rate still poses a risk of increasing KLBF's burden," Azis told Kontan.co.id, Wednesday (31/1).
However, Azis sees that the performance prospects of KLBF will still grow, albeit limited, considering the public's purchasing power is still relatively weak and currency fluctuations can still be a negative sentiment for pharmaceutical issuers.
Bryan Soetopo, an analyst at Henan Putihrai Securities, believes that KLBF's inclusion in the IDX High Dividend 20 raises doubts for some investors.
"This year, KLBF has a sluggish performance which will impact the low profitability margin. However, we believe KLBF can recover in the coming years because their business is capable of meeting the increasing demand for health services and products," Bryan told Kontan.co.id, Wednesday (31/1).
As of the third quarter of 2023, KLBF's net profit reached IDR 2.06 trillion, a decrease of 16.9% compared to the same period last year due to challenging market conditions in the post-pandemic transition period.
Just a reminder, the IDX High Dividend 20 is an index that measures the price performance of 20 stocks that have distributed cash dividends over the past three years and have a high dividend yield.
Muhammad Nafan Aji Gusta, Senior Investment Information at Mirae Asset Securities Indonesia, said that the price movement of KLBF shares is currently in a downtrend.
"However, there is at least a potential pullback that can be used for buy on weakness consideration," he revealed to Kontan.co.id, Wednesday (31/1).
As a result, Nafan recommends a buy on weakness for KLBF shares with a target price of IDR 1,660 per share.
