Matahari Department Store (LPPF IJ, BUY, TP: IDR7,500)

[syahruddin]

Matahari Department Store (LPPF IJ, BUY, TP: IDR7,500)

Ground Checks: New Homeware Unit
Ground Checks
Maintain BUY, TP of IDR7,500, 68% upside with 8% FY19F yield. We visited the recently-renovated Matahari department store in Jakarta’s Lippo Mall Puri to take a closer look at some new initiatives. These are its new homewares zone, exclusive partnership with 361° in its Active Zone section, and DTR tie-up with Disney offering exclusive branded designs for teens. Most of the store-keeping units are offered via direct purchase, which is healthy for margins compared to consignments. Meanwhile, the recent closure of Mataharimall.com should increase potential write-offs for 4Q18.