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10-04-2021, 07:14 PM
Indonesian cigarette manufacturers are having a bad year with a slow/non-growing market, and heavier excise tax.
Consequently, stocks like Gudang Garam and Sampoerna (the largest players) have fallen quite sharply to valuations which made me do a double take. But will these cigarette manufacturers see better days?
Even as the market may have stopped growing, sales may still grow through price inflation.
But as the cigarette smoking population around the world shrink, and the possibility of ever higher excise tax in Indonesia, this probably isn't a good bet.
https://www.idx.co.id/Portals/0/StaticDa...202020.pdf
https://www.idx.co.id/Portals/0/StaticDa...n-HMSP.pdf
Consequently, stocks like Gudang Garam and Sampoerna (the largest players) have fallen quite sharply to valuations which made me do a double take. But will these cigarette manufacturers see better days?
Even as the market may have stopped growing, sales may still grow through price inflation.
But as the cigarette smoking population around the world shrink, and the possibility of ever higher excise tax in Indonesia, this probably isn't a good bet.
https://www.idx.co.id/Portals/0/StaticDa...202020.pdf
https://www.idx.co.id/Portals/0/StaticDa...n-HMSP.pdf