Current Rating: Buy; Previous Rating: Hold

Current Target Price: 1,550; Previous Target Price: 1,450

• Total sales reached IDR 5.18 tn (+3.9% y/y), propped up by strong growth (+12.7% y/y) in Consignment Sales which offset the 2.0% y/y contraction in Direct Purchase sales.
• We make revisions to our FY18-19 assumptions. Forecast for RALS Total Sales remain intact as we are expecting weaker growth for the rest of the year given that post-Ramadan sales are hitting the seasonal rough patch. Growth in consignment sales is revise up to 4.8% and 5.9% whilst sales from direct purchase is cut to 3.4% for FY18 and 4.3% for FY19.
• We raise our DCF-derived 12-month forward target price to IDR 1,550, translating into 2018F P/E of 20.5x. We upgrade our rating for RALS to BUY from previously HOLD

PT Phillip Securities Indonesia
ANZ Tower Level 23B, JlJendSudirman
Kav. 33A Jakarta 10220 – Indonesia
Tel +62-21 5790 0800 Fax +62-21 5790 0809
Website: www.phillip.co.id