Aspirasi Hidup Indonesia (ACES.IJ Rp 780; BUY TP Rp 1,100) Solid Jan25 Sales Driven by New Stores, but soft SSSG at 3.4%

Stock Code	Last Price	Change	Change %
TPIA	10,500	975	10.24%
DSSA	52,700	900	1.74%
DCII	153,100	550	0.36%
IBST	5,500	475	9.45%
RAJA	2,610	300	12.99%
RDTX	12,850	250	1.98%
PACK	2,470	220	9.78%
SHIP	2,100	210	11.11%

Aspirasi Hidup Indonesia (ACES IJ)

Solid Jan25 Sales Driven by New Stores, but soft SSSG at 3.4%

ACES reported 1M25 sales growth of 9.5% yoy (FY25F: 11.9% yoy) with Jan25 SSSG of 3.4% (vs. our FY25F of 7.2%).
AZKO stores continued to see strong foot traffic, especially on weekends, reinforcing the customer familiarity with the brand.
We expect better sales and SSSG in the coming months leading up to the Eid Festive, Reiterate our Buy rating with TP of Rp1,100.

Jan25 SSSG of 3.4% with 1M25 sales growth of 9.5% yoy

ACES recorded indicative sales of Rp727bn in 1M25 (+9.5% yoy), representing 7.6% of our FY25F of Rp9.5tr, i.e line. ACES reported a rather soft SSSG of 3.4% in Jan25 (Dec24: 7.0%, Jan24: 5.6%). Outside Java area remained the key driver with solid SSSG of 8.1%, followed by Java ex-Jakarta at 1.3%.

A new store opened in Papua, bringing total AZKO stores to 246

On Feb 12^th, 2025, ACES opened a new 2,700sqm store in Abepura, Papua, bringing the total number of AZKO stores to 246. In Jan25, ACES launched a campaign promoting its new brand and the New Year Theme #BerubahJadiLebih. With the introduction of AZKO, the company plans to complete the signage updates by the end of 1Q25.

We expect SSSG to improve in the coming months, supported by the Eid Festive

Before the pandemic, between FY13-19, SSSG in January ranged from -4.7% (FY15) to 10.8% (FY19). With Jan25 SSSG at only 3.4% and yoy sales growth of 9.5%, this translates to soft growth for stores operating over 12 months, with sales growth primarily driven by new stores. While it is difficult to assess performance based on a single month, we expect to see SSSG improve in the coming months, supported by the Eid festive period.

Undemanding valuation - Reiterate our Buy Rating

Based on our recent meeting with MDIY (at current price FY25 PE of 27.1x), we believe ACES and MDIY target different market segments, given the significant difference in spending basket size (Rp400k for ACES vs Rp80k for MDIY). While competition is inevitable, particularly from similar stores and online marketplaces, we believe ACES’s proven track record, strong execution, and mid-to-upscale target market–offering greater convenience and better service for durable products intended for long-term use–will support sales growth going forward. At the current price, ACES trades at FY25F PE of 14x, below its avg 3y PE of 15.9x. Maintain Buy with an unchanged TP of Rp1,100 (FY25F PE of 19.6x).

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