Prospect of Sumber Alfaria (AMRT) Projected to Grow Double Digits

AMRT estimates revenue growth in 2024 to be around 10-11% and Same Sales Store Growth (SSSG) between 4-6%.

The company's guide on the number of store expansions for 2024 is around 1000 for Alfamart, 200 for Alfamidi, and about 250 for Lawson.

Bahana Securities estimates AMRT's revenue performance will grow by 11.6% in 2024 to IDR 119.4 trillion, with profit growth of 20.4% year on year to IDR 4.09 trillion.

“We expect another double-digit revenue in 2024,” Christine revealed in research on March 25, 2024.

Read Also: Sumber Alfaria (AMRT) Genjot Pendapatan dari Lawson, Cek Rekomendasi Sahamnya

Therefore, Christine maintains a Buy with an unchanged target price of IDR 3,400 per share. AMRT is one of the few retailers that managed to record robust growth, despite generally weakening purchasing power.

This premium valuation is viewed based on AMRT consistently recording double-digit revenue growth since the COVID-19 pandemic in 2020. The risk for AMRT is consumer spending worse than expected, and the operational burden of new stores higher than expected.