JAKARTA - Issuer consumers benefit from interest rate cuts, low inflation, and a decrease in the price of fuel oil (BBM). According to the Head of Research NH Korindo Reza Priyambada, make cuts in the BI rate mortgage interest rates down and the growing purchasing power.
Reza expect BI rate will remain at 7.5%. Because even though central bank to raise interest rates, but it will not be strong enough to sustain the rupiah.
Ciptadana Securities analyst Jennifer did not find a decrease in the BI rate affects the increase in public interest in consumer products. According to him, the decline in fuel prices make the expectations of people's purchasing power. This is due to the transfer of expenditure into demand for consumer products.
But now, consumers issuers overwritten new challenges. The rupiah exchange rate against the dollar continues to weaken, even this week, the BI rate was recorded at Rp 13 191 dollars. "This is the problem. Due to rising raw material costs. Performance consumer issuers may be disturbed," said Reza.
Jennifer said, weakening rupiah could make the hike burden on issuers consumer. This is particularly true of issuers who have imported raw materials and have production costs in dollars. Thus, the increase in Cost of Goods Sold (COGS) margin depressed consumer issuers. He pointed out that pharmaceutical companies generally have large portions of COGS.
Even so, he mentions there are some raw materials or materials production also decreased. It's like wheat and skim milk. Thus, there is the possibility of some issuers consumer margins will remain intact.
Reza feel the consumer sector companies will not be able to grow brilliant if the exchange rate is still as it is today. He estimated profit consumer issuers will grow 5% to 6% this year.
Since the beginning of the year, the consumer sector shares have risen 7.15%. Growth even able to occupy the third-highest position in the Indonesia Stock Exchange (IDX).
Reza recommend UNVR and ICBP. According to him, the product of the issuer's enough public interest. UNVR did not have a lot of dollar debt load. The dollars are paid only royalties to the center. He suggested UNVR buy with a target price of USD 41,000 and USD 15,200 in the ICBP.
Reza expect BI rate will remain at 7.5%. Because even though central bank to raise interest rates, but it will not be strong enough to sustain the rupiah.
Ciptadana Securities analyst Jennifer did not find a decrease in the BI rate affects the increase in public interest in consumer products. According to him, the decline in fuel prices make the expectations of people's purchasing power. This is due to the transfer of expenditure into demand for consumer products.
But now, consumers issuers overwritten new challenges. The rupiah exchange rate against the dollar continues to weaken, even this week, the BI rate was recorded at Rp 13 191 dollars. "This is the problem. Due to rising raw material costs. Performance consumer issuers may be disturbed," said Reza.
Jennifer said, weakening rupiah could make the hike burden on issuers consumer. This is particularly true of issuers who have imported raw materials and have production costs in dollars. Thus, the increase in Cost of Goods Sold (COGS) margin depressed consumer issuers. He pointed out that pharmaceutical companies generally have large portions of COGS.
Even so, he mentions there are some raw materials or materials production also decreased. It's like wheat and skim milk. Thus, there is the possibility of some issuers consumer margins will remain intact.
Reza feel the consumer sector companies will not be able to grow brilliant if the exchange rate is still as it is today. He estimated profit consumer issuers will grow 5% to 6% this year.
Since the beginning of the year, the consumer sector shares have risen 7.15%. Growth even able to occupy the third-highest position in the Indonesia Stock Exchange (IDX).
Reza recommend UNVR and ICBP. According to him, the product of the issuer's enough public interest. UNVR did not have a lot of dollar debt load. The dollars are paid only royalties to the center. He suggested UNVR buy with a target price of USD 41,000 and USD 15,200 in the ICBP.
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