Long road to good health
Analyst
Plenty of upside, but there are challenges
Edward Tanuwijaya +6221 3003 4932 [email protected]
Scarcity driven valuation
Maynard ARIF +6221 3003 4930
Prefer pharmaceuticals over healthcare services [email protected]
Universal healthcare plan – the game changer.
Indonesia’s healthcare expenditure is among the lowest
in the region, at only 2.7% of GDP in 2012. The introduction of the universal healthcare plan (JKN)
starting in 2014 is expected to change the sector’s
outlook in the long run. JKN calls for 100% healthcare
STOCKS
coverage for all Indonesians by 2019. This structural change should drive Indonesia’s healthcare spending
Price Mkt Cap Target Price Performance (%)
growth ahead, and be higher than 12% CAGR.
Plenty of upside, but there are challenges. Rating There is
substantial upside for the healthcare sector, driven by
Kalbe Farma
13.5 38.2 BUY
under-spending in healthcare, rising income,
Kimia Farma
16.6 6.7 NOT RATED
infrastructure deficiency and growing insurance NOT RATED
Tempo Scan Pacific
Sido Muncul
(9.1) N.A NOT RATED
industry. Nevertheless, we identified some key
Siloam
37.5 N.A FULLY VALUED
challenges, in particular the lack of government
Sarana Meditama
N.A 9.3 37.5 NOT RATED
funding, low participation from the private sector and
N.A 6.8 (15.8) NOT RATED
lack of appropriate infrastructure to support this major
Source: DBS Vickers, Bloomberg Finance L.P
change in the healthcare system.
Prefer pharmaceuticals over healthcare services.
Direct beneficiaries are pharmaceuticals and healthcare services sectors. Pharmaceutical producers procuring generic medicines would see volumes surge but slight margin pressure will be inevitable. Healthcare services players, on the other hand, face larger risks, both operational (a cap on implementation of INA–CBG standard rates for health services) and financial (capital intensive business). Both sectors currently trade at premium valuations driven by lack of options, but we prefer pharmaceuticals over healthcare services. Pharmaceuticals offers better returns and more stable cash flows. Top pick is Kalbe Farma (KLBF).
www.dbsvickers.com
ed: JS / sa: MA
Industry Focus Indonesia Healthcare Sector
Table of Contents
Analysts
Edward Tanuwijaya (6221) 3003 4932 Highlights 3 [email protected]
Indonesia healthcare industry overview
Maynard Arif (6221) 3003 4930 [email protected]
Acutely low healthcare sector spending
Private expenditure remains as major
contributor 4
Healthcare reform on its way
Universal healthcare plan – the game
changer 6 Thailand’s success story as a benchmark
Pharmaceuticals and hospitals sector to reap the benefits 8
Generic drugs – the low hanging fruit for
pharmaceutical companies
Striving for adequate healthcare service
coverage 9 Potential repatriation of Indonesian pationes 10 Prefer pharmaceuticals over hospitals sector
APPENDIX 12
Healthcare services players summary
Pharmaceuticals players summary
Pharmaceuticals valuation
Hospitals valuation
BPJS participants classification
Hospital beds facility allotment
JCI accredited hospitals in Indonesia
Hospital bed shortage analysis
Regulations for pharmaceuticals sector
Regulations for hospital sector
Negative investment list changes
Stock profiles
Page 2
Industry Focus
Indonesia Healthcare Sector
Highlights
Universal coverage – game changer in long term. We requirement of number of beds. Moreover, lack of of expect structural shift in Indonesia's healthcare sector in the
healthcare coverage also reduces affordability in accessing long run with the introduction of universal healthcare plans
hospital services.
(JKN) since early 2014 due to several reasons: On the flip side, there are challenges that will restrict the Acutely low healthcare spending at only 2.7% of 2012
growth opportunities in the private healthcare service industry GDP, among the lowest in the Asia Pacific region.
in the near term: high capital requirement to set up JKN’s roadmap targets 100% healthcare coverage for
hospitals.and cap rate on healthcare service charges (based on all Indonesians healthcare by 2019.
INA-CBG) as defined in Health Ministry regulation no. Favorable demographics: rising middle to upper class
population (from 97.5m people (or 41% of population) in 2002 to 151.3m (or 61% of population) in 2013,
Premium valuations justified. Defensive sectors in general defined as both Emerging Consumer Class and
command premium valuations, especially in a volatile market. Consumer Class on World Bank studies), urbanisation,
Moreover, the additional boost in the Indonesian market is and improving affordability.
driven by scarcity premium as there are limited choices for investors based on market cap and liquidity.
Chill and relax in the near term. Despite the positive long term structural shift, we are more cautious in the near term as
KLBF performance during correction we believe there are challenges in JKN’s implementation.
JCI Index
KLBF
Funding could potentially be an issue with low budget on
healthcare.
Slow progress in infrastructure development to 130
accomodate JKN’s registration process and logistics.
Low participation from the private sector on healthcare
services.
Pharmaceutical sector: more sustainable growth. The
pharmaceutical industry is well established and has been
growing at a CAGR of 8.7% in the past four years. Business Monitor International (BMI) expect slightly stronger growth
Source: Bloomber Finance L.P.
(c.9% p.a.) for the next four years to reach Rp89.3tr by 2017.
Strategy and stock picks. Direct beneficiaries of JKN The industry will directly benefit from the boost in healthcare
implementation are pharmaceutical and healthcare services spending primarily generic drugs. Generic drugs is set to grow
sectors. We prefer pharmaceuticals over healthcare services as faster than the overall industry at c.12% CAGR in the same
pharmaceuticals players offer better returns and more stable period with the implementation of JKN. Hence, local players
cash flows. We upgraded Kalbe Farma to BUY (from HOLD) will benefit more as they dominate the generic segment and
with a new TP of Rp1,900 (offering 16% upside). We also key players are Kalbe Farma (KLBF IJ), Kimia Farma (KAEF), Indo initiated coverage on Siloam Hospitals with FULLY VALUED call Farma (INAF), Hexpharm (non-listed), and Dexa Medica (non-
and TP of Rp12,750.
listed).
Where things can be different
Healthcare services: Plenty of upside but accompanied
Better and faster JKN implementation by risks. There is substantial upside for healthcare services due
Increased budget allocation towards healthcare sector to lack of supply. Indonesia’s bed ratio per 10,000 population
Better than expected macro outlook in Indonesia at 10.9 is well below ASEAN’s average of 15.7. Our analysis
shows that at least 20 provinces fell short in terms of
Page 3
Industry Focus Indonesia Healthcare Sector
Indonesia healthcare industry overview
Acutely low healthcare sector spending
Moreover, according to recently issued President Instruction Indonesia’s healthcare expenditure was an inadequate 2.7% of
(Inpres) no. 4/2014 on 19May2014 and the state budget GDP in 2012, despite growing at 12% CAGR for the past 5
revision, the Health Ministry’s budget is cut by as part of the years. This figure is one of lowest in the region and below
government’s streamlining measures to save c.Rp43tr in order ASEAN countries’s average of 4%.
to keep the national current account deficit below 2.4% of GDP this year. This is also partly due to budget increase Indonesia healthcare spending (c.30%) in energy and fuel subsidies. Therefore, we believe this
300 Rp tr
will put further pressure on healthcare spending in the near term.
Private expenditure remains a major contributor
Government spending on healthcare will remain subdued with
the state budget’s emphasis on energy subsidies. Private
healthcare expenditure (even with larger base) has outgrown government healthcare expenditure significantly in the past 4
years. As such, private healthcare expenditure has been the
major contributor to the steep rise in healthcare expenditure
per capita (at ~15% CAGR from 2009 - 2012). Despite the Source: WHO, Business Monitor International (BMI)
high growth, Indonesia’s healthcare expenditure per capita remains one of the lowest in ASEAN.
Indonesia among the lowest healthcare spender
10% % of GDP 9%
Strong growth in healthcare expenditure per capita
US$ 120 7%
US$/capita (RHS) 6%
Rp
Rp/capita (LHS)
e a 400,000
Source: CIA World Factbook
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Government healthcare expenditure (at 1.5% of total
Source: WHO, DBS Vickers
government expenditure in 2014) remains miniscule compared
to the amount allocated and spent for energy and fuel Private vs gov’t healthcare expenditure subsidies.
Gov’t healthcare expenditure (vs energy subsidy)
25% Healthcare
Electricity subsidy
Fuel subsidy
Source: WHO, DBS Vickers
Source: WHO, Ministry of Finance (Indonesia), Budget Statistics
Page 4
Industry Focus
Indonesia Healthcare Sector
Healthcare expenditure per capita comparison
Source: WHO, ASEAN.org, DBS Vickers
Private spending on healthcare (at 66% of the total in 2011) remains the larger pie as the government’s share declined from 40% in 2009 to 34% in 2011. The underpenetration of commercial health insurance in Indonesia resulted in a high percentage of out-of-pocket healthcare spending. Out-of- pocket expenses formed 76% of private healthcare spending or 50.2% of total healthcare expenditure (higher than ASEAN’s average of 46.3%) in 2011.
Out-of-pocket expenditure remains the highest portion
Government
Private - out of pocket
Private - other source
Source: WHO Out-of-pocket healthcare expenditure portion comparison
m bodi
ilan a
Source: WHO
Page 5
Industry Focus Indonesia Healthcare Sector
Healthcare reform on its way
described in Indonesia Case-Based Group (INA-CBG) under Health Ministry regulation no.69/2013.
Universal healthcare plan – the game changer
Despite the urgent need for healthcare reform, the never- BPJS acts as facilitator with main functions of pooling ending debate on universal healthcare coverage has been on
members’ premiums and making payments to healthcare for a long time. Indonesia’s law no. 40/2004 described the
providers for services provided to members under the universal need to implement universal insurance system (JKN). There are
healthcare scheme. Currently, there are close to 120m several schemes currently - public sector workers (ASKES),
members (representing less than ~50% coverage). In its “BPJS social security (JAMSOSTEK), social security for Indonesia
roadmap”, the government is targeting full coverage by 2019 . armed forces (ASABRI) and civil servant’s savings & insurance (TASPEN). To achieve a unified national health insurance
National universal coverage (JKN) roadmap system, law no. 24/2011 mandated that existing schemes will
be unified under one social security agency (BPJS) in stages starting January 2014.
(2019) 270m
As of 1 January 2014, ASKES and JAMSOSTEK have officially
100% coverage
ceased operations and renamed “BPJS Kesehatan” and “BPJS
Ketenagakerjaan”, respectively. “BPJS Kesehatan” has taken
120m
over the health insurance scheme effective immediately, while
50% coverage
“BPJS Ketenagakerjaan” is expected to start taking over the
existing social security schemes from JAMSOSTEK by 1 July
76.4m
2015. ASABRI and TASPEN will have to complete the transfer 30% coverage Source: Roadmap to National Health Insurance 2012 – 2019
of their programs to “BPJS Ketenagakerjaan” by 2029.
Refer to APPENDIX for more details on participants (including Milestones their contributions) and hospital bed facilities allotment.
Starting 1 January 2014, JKN must cover at least: PBI (Penerima Bantuan Iuran): Beneficiaries of health insurance contributions (i.e. poor and near-poor) Indonesia’s national army (ABRI) and civil servants under the Ministry of Defence and his/her family members
Indonesia’s police (Polri) and civil servants in the police department and his/her family members Existing members of ASKES
Source: BPJS implementation regulation no.1/2014 Existing members of JAMSOSTEK
BPJS participants are divided into two categories: However, as expected, the first few months of implementation PBI (Penerima Bantuan Iuran): Beneficiaries of health
have highlighted the lack of preparation of this new system insurance contributions (i.e. poor and near-poor) and
despite issuance of JKN implementation regulation no.1/2014. Non-PBI: Participants (including foreigners who have
worked in Indonesia for at least 6 months) Our back-of-envelope estimate points that the JKN program is contributing designated monthly premiums.
unfunded when compared against the expected national healthcare expenditure. The government’s allocated budget for
Under the new system, BPJS participants are entitled to receive JKN of c.Rp29tr only makes up a mere 12% of total healthcare designated health services at healthcare providers participating
expenditure. The underfunded status should improve over in JKN scheme. The new system provides a more structured
time.
and streamlined process for referrals (from primary care to
secondary referrals, etc). The rates that can be claimed by The huge potential of the healthcare sector, while currently a healthcare providers is also standardised and is extensively
“big if”, lies with the successful implementation of JKN, which
Page 6
Industry Focus
Indonesia Healthcare Sector
will be crucial in shaping Indonesia’s healthcare industry and
Thailand’s declining portion of out-of-pocket expenses
definitely benefit healthcare players in Indonesia in the long based on total healthcare expenditure run.
Thailand’s success story as a benchmark
Look no further than Indonesia’s neighbour Thailand ( started
universal coverage initiative in 2002) for the huge potential
that JKN can generate. Fast forward a decade later. The 50% universal coverage program was implemented efficiently and is 40%
an overwhelming success. The following statistical data backs
this impressive achievement:
Healthcare expenditure per capita has more than
tripled to US$202 in 2011 from US$60 in 2001. Private - others Portion of government’s expenditure was lifted to a
Gov't
Private - out of pocket
Source: WHO
staggering 76%, from 57% in 2001, which in turn
significantly reduced the population’s burden on Indonesia’s current healthcare expenditure per capita of US$95 healthcare expenditure. The portion of out-of-pocket
is Thailand’s level in 2005.
expenses was slashed to just 13.7% from 22% in
Thailand healthcare spending tripled within a decade
since 2002
Source: WHO
Page 7
Industry Focus Indonesia Healthcare Sector
Pharmaceutical and hospital sectors to reap the benefits
Pharmaceuticals and hospitals, the two main sectors in the counterfeit (due to sub-standard supervision quality and lax IP heavily regulated industry, are bound to be significantly
regime), and overall low purchasing power of the Indonesian impacted by the new government initiatives. Refer to
population.
APPENDIX for list of regulations that regulate the pharmaceutical and hospital sectors.
The roll-out of new BPJS initiatives starting 2014 will potentially spur generic drug sales volume further, albeit
Generic drugs –low hanging fruit for pharmaceutical
generating lower margins to pharmaceutical companies as
companies
compared to patented drugs.
Indonesia’s pharmaceutical industry is well-established, with Prescription drugs is the key driver local pharmaceutical manufacturers controlling approximately
75% of the market, according to International Pharmaceutical
Manufacturers Group (IPMG). This is partly due to regulations
35 11% CAGR
favouring local drug producers (i.e. protectionist business
environment) which form formidable barriers to entry to
foreign drugmakers.
17 19 21 The newly issued negative investment list (DNI) under
Presidential Decree 39/2014 does not have a significant impact
on the pharmaceutical sector. The maximum foreign
ownership in manufacturers in the pharmaceutical sector was
raised only from 75% to 85%.
Source: Business Monitor International (BMI) Pharmaceutical sales rose by 8.7% CAGR in the past 4 years to
Rp63.8tr and contributed 26% of total healthcare expenditure. Besides prescription drugs, over-the-counter (OTC) drugs make Prescription medicine (which includes patented and generic
up a significant portion of pharmaceutical sales in Indonesia. drugs) drove pharmaceutical sales, posting 11% CAGR in the
Low purchasing power and the limited availability of same period.
prescription drugs in some areas are the major reasons that a high portion of Indonesians (more than 60%) are self-
Strong growth in pharmaceutical sales medicating.
70 Rp tr 65
64 Indonesia is considered as the most attractive market for OTC
8.7% CAGR
60 59 producers in ASEAN. However, as purchasing power increases
55 53 and the more affordable generic drugs became increasingly
50 49 46 available, OTC product sales growth has moderated over the
past few years (at 5.4% CAGR, vs prescription drugs at 11%
CAGR). Its contribution to pharmaceutical sales has also
steadily declined from c.45% in 2009 to c.41% in 2013. OTC
products are now widely regarded as “preventative” medicine.
Source: Business Monitor International (BMI)
Patented drugs manufactured by international firms command premium prices. These patented drugs are preferred by the higher-income population and will benefit from Indonesia’s growth in income. But, these drugs are more vulnerable to
Page 8
Industry Focus
Indonesia Healthcare Sector
Declining contribution of OTC drug sales Public vs private hospitals market share trend
Patented drug
Generic drug
Source: Business Monitor International (BMI) Private
Public
Source: Ministry of Health, DBS Vickers
Moderating growth in OTC sales Indonesia hospitals breakdown (Jan 2014)
30 Rp tr Ministry of
24 25 25 Health & other
district, municipal)
5 Military & Police
Source: Business Monitor International (BMI)
Source: Ministry of Health, DBS Vickers
Striving for adequate healthcare service coverage
The number of hospitals in Indonesia has reached 2,244 as of Hospitals in Indonesia are divided into 2 categories - general Jan 2014, according to data from the Ministry of Health. As
and special. Each category has further breakdowns in terms of expected, private hospitals (both non-profit and profit)
classes, number of specialists and medical services provided. outnumber public hospitals with 60% market share. Public hospitals’ market share declined quite significantly to 40%,
Hospital categories
from 48% in 2012.
Minimum requirement
Category Class Basic
support Other specialist
Medical Sub-
specialist specialist 2,500
Number of hospitals in Indonesia specialist
893 Minimum requirement
Category Class Medical
Medical sub-
A Complete Complete
0 C Minimum Minimum 2012
hospitals
B Limited
Source: Law no. 44/2009, DBS Vickers
Source: Ministry of Health, DBS Vickers
Page 9
Industry Focus Indonesia Healthcare Sector
Despite the ~24% increase in hospital beds annually, the
Analysis on hospital beds shortage
current ratio of beds per 10,000 population is 11, still
Required bed capacity ratio (per 10,000 population)
significantly below ASEAN’s average of 15.7 per 10,000
population. 20 29 32
No. of province in hospital beds shortage
% of province in hospital beds shortage
Indonesia hospitals bed capacity and beds-to-population
Source: WHO, Indonesia Ministry of Health, DBS Vickers ratio Note: * equivalent to ASEAN average level, ** equivalent to Thailand’s
300,000 Beds (LHS)
Beds / 10,000 population (RHS)
12.0 level and *** equivalent to Singapore’s level. Refer to APPENDIX for
10.9 11.0 more detailed data per province.
9.7 Potential repatriation of Indonesian patients.
9.0 In 2012, Indonesian patients were estimated to have
8.0 accounted for c.48% and c.56% of international patients in
7.0 Singapore and Malaysia, respectively. We recognize that this
6.0 6.0 represents untapped potential in Indonesia healthcare sector,
when Indonesia’s healthcare services improve in the future.
5.0 The upside potential is estimated to be as large as c.7% of
4.0 Indonesia’s current healthcare expenditure of ~US$ 24bn.
Source: Ministry of Health, DBS Vickers
Singapore and Malaysia private hospitals attract mostly
Indonesians
Beds to 10,000 population ratio - regional comparison
Source: Singapore Tourism Board (STB), Malaysia Healthcare Travel Council (MHTC), DBS Vickers
Source: CIA Factbook, Indonesia Ministry of Health, DBS Vickers
According to the Singapore Tourism Board, foreign visitors We did an analysis on adequacy of hospital beds in all 33
seeking healthcare services in Singapore increased at c.9% provinces in Indonesia based on data from the Ministry of
CAGR between 2008 – 2012 and surpassed 850,000 in 2012. Health. Our analysis shows that at least 20 provinces (or 60%
Indonesian healthcare visitors made up just below 50%, and of the total) fell short on the number of hospitals beds
c. 80% were from Jakarta. In terms of spending, Indonesian required.
healthcare visitors (including those accompanying someone with healthcare needs) spent an average of SGD 2,207
(equivalent to Rp20.5m) in 2012. This translates to Rp8.3tr.
According to Malaysia Healthcare Travel Council (MHTC), the number of incoming healthcare travellers reached 671,727 in 2012 (c.16% CAGR from 2008 – 2012). This translates to about Rp5.4tr, if we assume 56% are from Indonesia and spend about 30% less per person compared to Singapore.
Page 10
Industry Focus
Indonesia Healthcare Sector
Prefer pharmaceuticals sector over hospitals secto r
We believe that the newly implemented JKN system will undoubtedly shape Indonesia’s healthcare sector in the long
Physician density per 10,000 population
term. However, the huge potential upside is also
accompanied with execution risk which is related to adequate 38.5
Australia
United Kingdom
infrastructure to carry out the necessary plans.
United States
Japan
Both pharmaceuticals and health services sectors are the
China
direct beneficiaries from the potential successful BPJS
Brunei
implementation. However, there are limited number of listed 12.2
Indonesian companies in these two sectors, which in turn
India
justify premium valuations due to scarcity: 5
Cambodia
2.3 (per 10,000
2 population) Pharmaceuticals: Kalbe Farma (KLBF), Kimia Farma (KAEF), Indofarma (INAF), Tempo Scan (TSPC), and
Indonesia
Sido Muncul (SIDO). Source: CIA World Fact Book, WHO, Kaiser Family Foundation
Hospitals: Siloam International Hospitals (SILO),
Sarana Meditama Metropolitan (SAME), and To conclude, pharmaceutical players have a better risk to Sejahteraraya Anugrahjaya (SRAJ).
reward ratio than hospitals. Additionally, valuations for pharmaceuticals players are more reasonable than hospital
We believe that the clear winners from the JKN
developers & operators.
implementation are pharmaceutical producers procuring
generic medicines (with the potential of accelerating volume For the pharmaceuticals sector, our top pick is KLBF. We growth), although margin pressures are inevitable.
upgraded KLBF to BUY (from HOLD) with a new TP of Rp1,900 (offering 16% upside), implying 34x FY15F PE. KLBF
As the price of generic medicines are capped by the ceiling stands to reap benefits from higher spending on set in Ministry of Health Decree no 092/MENKES/SK/11/2012,
pharmaceuticals, particularly higher volumes in generic the focus should be on the cost side. Pharmaceutical
products.
producers with large production capacities and networks
should have the edge to win procurement tenders conducted Together in this report, we initiate coverage on SILO with by the government for generic medicines.
FULLY VALUED call and Rp12,750 TP, based on DCF valuation on its existing hospitals and potential new hospitals, implying
Hospital developers and operators are in a good position to 20x EV/EBITDA 2015 (expensive as compared against regional rake in extra revenue. However, hospital players face larger
peers). Potential upside to our valuation will be from better risks in both operations and financial aspects. Strong brands
than expected operational performance of its younger (which goes hand-in-hand with excellent service quality) and
hospitals (less than 5 years operation under SILO brand) and significant top line growth are critical to ease concerns on
successful execution of future acquisitions. With its current cashflow (given the nature of low operating margins in this
position as the market leader in private hospital business, business) and capital intensive requirement on expansion.
SILO is in great position to tap into Indonesia’s Implementation of INA-CBG standard rate for health services
underpenetrated healthcare sector and the country’s rising should further cap revenue generation. Health Ministry
healthcare need. SILO is in an aggressive expansion mode regulation no 69/2013 provides a comprehensive healthcare
until 2017, whereby it would require large and constant service category list with assigned standard tariffs for each.
funding to reach its goal.
In addition, Indonesia is facing a shortage in medical human resources as compared to regional countries to support healthcare providers.
Page 11
Industry Focus Indonesia Healthcare Sector
APPENDIX
Healthcare service players summary
Company Ticker No. of hospitals Geographic exposure Business strategy / Expansion plan
8 hospitals in Java (i.e. Greater
Siloam International Hospitals
SILO IJ
16 and Surabaya) and another 8
Aggressive expansion - target to have 40
hospitals by end of 2017 Sarana Meditama
hospitals outside Java.
Metropolitan
SAME IJ
2 Greater Jakarta only
Adding capacity to existing hospitals
Sejahteraraya Anugrahjaya
SRAJ IJ
2 Greater Jakarta only
Focusing on turning around the operations of its 2nd hospital
Source: DBS Vickers, Bloomberg Finance L.P.
Pharmaceuticals players summary
Company Ticker Key segments Balance sheet Expansion plan Other remarks
OTC &
Adding capacity to
Kalbe Farma
KLBF IJ
prescribed
Net cash of Rp970bn (-11%
net gearing) as of 1Q14
current manufacturing
drugs
facilities Exploring to expand into
Kimia Farma
KAEF IJ
Retail
Net cash of Rp343bn (-21% net gearing) as of Dec 2013
Saudi Arabia and
State-owned company
Vietnam
Tempo Scan
TSPC IJ
OTC
Net cash of Rp1.4tr (-34%
To enter nutritional
Focus on its 9 core OTC
net gearing) as of 1Q14
health business
brands - Too dependent on its
Exploring to expand into
market leading herbal
Japan, Vietnam and
medicine brand "Tolak
Herbal
Thailand through JVs
Angin"
Sido Muncul
SIDO IJ
Net cash of Rp1.4tr (-50%
medicine
net gearing) as of 1Q14
and to invest in hotels
- Recently IPO on 18Dec2013
and real estate in
- 99.5% dividend payout
Central Java
ratio in 2013 (as SIDO has sufficient cashflow for future expansion)
Source: DBS Vickers, Bloomberg Finance L.P.
Page 12
Industry Focus
Indonesia Healthcare Sector
Pharmaceuticals valuation
Market
BB Ticker Company name
cap
PE(x) PB(x) Div. Yield ROE
% KLBF IJ
US$m 13A 14F 15F 13A 14F 15F
35.4 28.6 23.7 8.3 7.3 6.3 1.7 26.1 KAEF IJ
Kalbe Farma
25.2 22.8 18.1 3.4 3.0 2.6 0.7 14.1 TSPC IJ
Kimia Farma
20.1 18.8 15.7 3.2 3.1 2.8 2.9 17.1 SIDO IJ
Tempo Scan Pacific
Sido Muncul
28.3 24.6 21.4 4.4 4.0 3.6 1.8 20.7 Weighted average 32.3 26.7 22.2 7.0 6.2 5.4 2.0 23.8
Source: DBS Vickers, Bloomberg Finance L.P.
Hospitals valuation
ROE BB Ticker
Market cap
EV/EBITDA(x)
PE(x)
PB(x)
Div. Yield
Company name
% SILO IJ Equity
US$m FY14F FY15F FY14F FY15F FY14F FY15F
5.4 SAME IJ Equity
Siloam International Hospitals
271.1 n/a n/a n/a n/a n/a n/a 0.0 42.8 SRAJ IJ Equity
Sarana Meditama Metropolitan *
152.0 n/a n/a n/a n/a n/a n/a 0.0 -5.8 BGH TB Equity
Sejahteraraya Anugrahjaya *
17.5 BH TB Equity
Bangkok Dusit Medical Services
16.6 14.1 27.6 23.5 6.9 5.9 1.8 27.8 BCH TB Equity
Bumrungrad Hospital
15.8 13.9 28.5 24.4 4.5 4.2 0.0 13.8 RFMD SP Equity
Bangkok Chain *
19.4 18.0 27.3 24.2 3.8 3.4 1.6 19.7 IHH SP Equity
Raffles Medical
20.2 18.2 40.4 35.6 1.7 1.7 0.7 3.6 KPJ MK Equity
IHH Healthcare
16.9 14.7 30.5 27.3 2.8 2.7 0.0 9.4 APHS IN Equity
KPJ Healthcare *
11.1 FORH IN Equity
Apollo Hospitals Enterprise *
46.1 1.2 1.2 0.0 3.1 RHC AU Equity
Fortis Healthcare *
15.1 12.0 28.6 24.2 5.8 5.2 1.9 20.7 SHL AU Equity
Ramsay Healthcare *
11.9 10.9 17.5 15.7 2.2 2.1 4.0 12.6 PRY AU Equity
Sonic Healthcare *
Primary Healthcare *
Market weighted average
3.0 15.9 Source: DBS Vickers, Bloomberg Finance L.P. . Note: * Bloomberg consensus estimate
Australia
Page 13
Industry Focus Indonesia Healthcare Sector
BPJS participants classification
Source: Presidential Decree No. 111/2013
Page 14
Industry Focus
Indonesia Healthcare Sector
Hospital beds facility allotment
Source: Presidential Decree No. 111/2013
JCI accredited hospitals in Indonesia
No Name Location First Accredited
1 Eka Hospital
West Jakarta suburb
11-Des-10
2 Eka Hospital Pekanbaru
West Sumatra
01-Mar-14
3 Fatmawati General Hospital South Jakarta 14-Des-13
4 RS Premier Bintaro
West Jakarta suburb
15-Jan-11
5 RS Premier Jatinegara East Jakarta 03-Des-11
6 RS Premier Surabaya
Surabaya (East Java)
06-Mar-13
7 RSUP Sanglah Bali 24-Apr-13
8 RSUPN Dr. Cipto Mangunkusumo South Jakarta 20-Apr-13
9 Rumah Sakit Pondok Indah - Puri Indah
West Jakarta
16-Mar-13
10 Santosa Hospital
West Java
13-Nop-10
11 Siloam Hospitals Lippo Village
West Jakarta suburb
19-Sep-07
Source: Joint Commission International (JCI)
Page 15
Industry Focus Indonesia Healthcare Sector
Hospital bed shortage analysis
No. Province
Population (m)
Required beds (*)
Beds available
Shortage (Surplus)
1 N.A.D
2 Sumatera Utara
3 Sumatera Barat
6 Sumatera Selatan
9 Kepulauan Bangka Belitung
10 Kepulauan Riau
11 Dki Jakarta
12 Jawa Barat
13 Jawa Tengah
14 D I Yogyakarta
15 Jawa Timur
18 Nusa Tenggara Barat
19 Nusa Tenggara Timur
20 Kalimantan Barat
21 Kalimantan Tengah
22 Kalimantan Selatan
23 Kalimantan Timur
24 Sulawesi Utara
25 Sulawesi Tengah
26 Sulawesi Selatan
27 Sulawesi Tenggara
29 Sulawesi Barat
31 Maluku Utara
32 Papua Barat
Total 248.17 389,624 308,857 80,767 Source: DBS Vickers, Ministry of Health, WHO Note: * Total population (in m population) x 15.7 (the average bed ratio per 10,000 population for ASEAN) x 100.
Page 16
Industry Focus
Indonesia Healthcare Sector
Regulations for pharmaceuticals sector
Regulation
Regarding
Key points
Remarks
1. Pharmaceutical company has to obtain license from Health Minister to produce drugs and/or drug ingredients.
2. Pharmaceutical company has the following functions: manufacturing; educating and
Health Ministry regulation no.
training; research and development.
1 1799/MENKES/PER/XII/2010
Pharmacy Industry
3. A licensed pharmaceutical company has to
be a limited company and have at least 3 pharmacists (Indonesia citizens) for quality assurance, production and quality control.
4. A licensed pharmaceutical company must produce report activities (including production volume and value) every 6 months.
1. Every drug circulated in Indonesia must be registered and licensed for marketing (valid and renewable every 5 years).
2. Locally produced drug can only be registered by a licensed pharmaceutical company. (Pharmaceutical company is licensed by Health Minister)
Health Ministry regulation no. Revision of Health Ministry
2 Drug registration
3. Imported drug registration can be
1120/MENKES/PER/XI/2008
registered by local pharmaceutical company
regulation no.
which has written approval from foreign
1010/MENKES/PER/XI/2008
pharmaceutical.
4. Pharmaceutical company has to market the registered drugs within 1 year of approval date.
5. Penalties & suspensions for violating regulations.
3 Health Ministry decree no.
Revision of Health Ministry 312/MENKES/SK/IX/2013
National essential
Contain a list of national essential drugs with
drugs list
guidance on usage and management
decree no. 2500/MENKES/SK/XII/2011
4 Health Ministry decree no. 436/MENKES/SK/XI/2013
Generic drug price
Contain a list of generic drug in Indonesia
Revision of Health Ministry
together with retail price ceiling
decree no. 092/MENKES/SK/II/2012
5 Presidential decree no.
Revision of Presidential decree 39/2014
Negative
no. 36/2010 Source: Ministry of Health, DBS Vickers
investment list (DNI)
Maximum foreign ownership increased to
85% from 75% previously
Page 17
Industry Focus Indonesia Healthcare Sector
Regulations for hospital sector
Regulation
Regarding
Key points
1. Defining hospitals duties and functions.
2. Infrastructure and facility requirements of operational hospitals.
1 Law no. 44 / 2009
Hospital operation
3. Classification of hospitals based on type of services and management. (Refer to previous table of hospital classification).
4. Each hospital has to have construction permit (for a period of 2 years and extendable for another 1 year) and operational license (valid & renewable every 5 years). Both can be revoked during period
2 Health Ministry regulation no.
Hospital license
of validity.
147/MENKES/PER/I/2010
5. National tariff scheme is set by Health Ministry.
6. Penalties for violating regulations
1. Valid registration for medical practice is issued by Indonesia medical council.
3 Law no. 29 / 2004
Medical practitioner
2. Doctor and dentist registration letter and license to practice is valid, renewable every 5 years and can be revoked during period of validity.
3. Each doctor and dentist is granted licenses to practice maximum in three places (including gov't, private and individual practice).
4. Defining medical practitioner obligations, patient rights and obligations
5. Foreign graduates who intend to have medical practice in 2052/MENKES/PER/X/2011
4 Health Ministry regulation no.
Medical practitioner license
Indonesia should possess work permit, proficient in Bahasa Indonesia and passed Indonesia medical council evaluation.
6. Foreign medical practitioner can only practice as a means of knowledge and technology transfer and is prohibited to practice independently.
7. Foreign medical practitioner license to practice is valid, renewable
5 Health Ministry regulation no.
every 1 year and can be revoked during period of validity. 317/MENKES/PER/III/2010
Foreign nationals health
personnels
8. Foreign medical practitioner can only practice on either class A or
B hospitals.
9. Penalties for violating regulations
Standard tariff rates for
6 Health Ministry regulation no.
healthcare services (first-level
and advanced) in national
List of standard tariff for each category of healthcare services
health insurance program
Maximum foreign ownership increased to 85% from 75% previously Source: Ministry of Health, DBS Vickers
7 Presidential decree no. 39/2014
Negative investment list (DNI)
Page 18
Industry Focus
Indonesia Healthcare Sector
Negative investment list changes
Sector
Presidential Decree no. 39/2014
Presidential Decree no. 36/2010
1 More open to foreign investment Power plants (10 MW and above)
Max. foreign ownership is 95%.
Electricity transmission
Max. foreign ownership is 95%. Electricity distribution
Max. foreign ownership is 100% for
public private partnership (PPP) Max. foreign ownership is 49%.
Seaports
Max. foreign ownership is 95% for public
Max. foreign ownership is 49%
private partnership (PPP)
Land transportation terminals
Max. foreign ownership is 49% with
General cargo terminals
recommendation from Transportation
Closed
Ministry
Max. foreign ownership is 75% Venture capital
Pharmaceuticals
Max. foreign ownership is 85%
Max. foreign ownership is 80% Horticulture
Max. foreign ownership is 85%
Max. foreign ownership is 30%
Max. foreign ownership is 95%
2 More restricted to foreign investment Power plants (1-10 MW capacity)
Restricted to partnership Onshore oil and gas drilling
Max. foreign ownership is 49%
Max. foreign ownership is 95% Offshore oil and gas drilling
Domestic investment only
Max. foreign ownership is 75%
Max. foreign ownership is 95% (outside East Indonesia region)
Oil and gas well operation and maintenance service
Max. foreign ownership is 95% Oil and gas design and engineering service
Domestic investment only
Max. foreign ownership is 95% Telecommunication sector (content, information center, other value added services)
Domestic investment only
Restricted to partnership Data communication system
Max. foreign ownership is 49%
Max. foreign ownership is 95% Internet connection service
Max. foreign ownership is 49%
Max. foreign ownership is 49%
Max. foreign ownership is 65%
3 New regulations Oil and gas platform construction
Max. foreign ownership is 75%
Oil and gas spherical tank construction
Max. foreign ownership is 49%
Onshore upstream oil and gas installations
Domestic investment only
Onshore oil and gas pipeline
Domestic investment only
Offshore oil and gas pipeline
Max. foreign ownership is 49%
Oil and gas horizontal / vertical tank construction
Domestic investment only
Onshore oil and gas storage
Domestic investment only
Oil and gas survey
Max. foreign ownership is 49%
Geology and geophysics survey
Max. foreign ownership is 49%
Geothermal survey
Max. foreign ownership is 95%
Oil and gas technical inspection service
Domestic investment only
Biomass pellets producer
Restricted to partnership
Electricity maintenance and testing service
Domestic investment only
Non-hazardous waste treatment
Max. foreign ownership is 95%
Distribution
Max. foreign ownership is 33%
Storage
Max. foreign ownership is 33%
Cold storage in Sumatra, Java and Bali
Max. foreign ownership is 33%
Cold storage in Kalimantan, Sulawesi, East Nusa Tenggara, Maluku and Papua
Max. foreign ownership is 67%
Retail trade
Domestic investment only
Source: Investment Coordination Board (BKPM), DBS Vickers
Page 19
Industry Focus Indonesia Healthcare Sector
Stock Profiles
Page 20
Indonesia Healthcare Sector
Kalbe Farma
Bloomberg: KLBF IJ | Reuters: KLBF.JK
Refer to important disclosures at the end of this report
BUY Rp1,620 JCI : 4,847.70 (Upgrade from HOLD)
Tried & tested resilience
Price Target : 12-Month Rp 1,900 (Prev Rp 1,390)
Defensive play
Potential Catalyst: M&A, new products
DBSV vs Consensus: In line
Structural change to support LT growth
Analyst
Ability to maintain margin is key
Maynard ARIF +6221 3003 4930 [email protected]
Upgrade to BUY from HOLD with new TP of Rp1,900
Defensive play. We favour Kalbe Farma not only as
a consumer stock but also as a defensive stock for
investors who are looking for shelter in an uncertain
Price Relative
Rp
environment. While Kalbe is not immune to the
Relative Index
challenging macro environment, the company has
been a consistent performer and was able to sustain
its operating margin at mid- to high-teen levels even
during 2008-09.
360.0 Jun-10 Jun-11
Jun-14 87 Structural change to support LT growth. The
Jun-12
Jun-13
healthcare industry’s longer-term outlook is supported by a structural shift, with the introduction
Kalbe Farma (LHS)
Relative JCI INDEX (RHS)
Forecasts and Valuation
of universal healthcare plan (BPJS) which will cover all Indonesians by 2019 (from just 50% in 2014). For
Kalbe, the main beneficiary of BPJS will be its
Turnover
prescription drugs business.
EBITDA
Pre-tax Profit
Net Profit
Upgrade to BUY. We are upgrading Kalbe Farma
Net Pft (Pre Ex.)
from HOLD to BUY with a new price target of Rp1,900
EPS (Rp)
based on 34x FY15F PE (10% discount to Unilever).
EPS Pre Ex. (Rp)
While we reckon that Kalbe's valuation is expensive,
EPS Gth Pre Ex (%)
11 18 15 17 the premium is justified by its leadership in pharma
Diluted EPS (Rp)
sector and solid results even in tough times, akin to
Net DPS (Rp)
Unilever's resilient performance. BV Per Share (Rp) 173 202 235 274 PE (X)
P/Cash Flow (X)
EV/EBITDA (X)
At A Glance
46,875 P/Book Value (X)
Net Div Yield (%)
1.0 1.2 1.4 1.6 Issued Capital (m shrs)
75,938 / 6,338 Net Debt/Equity (X)
Mkt. Cap (Rpbn/US$m)
CASH CASH CASH CASH
Major Shareholders
ROAE (%)
9.8 Earnings Rev (%):
Gira Sole Prima (%)
9.3 Consensus EPS (Rp):
(12) (16) N/A
Santa Seha Sanadi (%)
Other Broker Recs:
Free Float (%)
46,511 ICB Industry : Health Care
Avg. Daily Vol.(‘000)
ICB Sector: Pharmaceuticals & Biotechnolog
Principal Business: Kalbe Farma manufactures and distributes pharmaceutical, consumer health, and nutritional products. It commands the highest market share within Indonesian pharmaceutical and OTC drugs market.
Source of all data: Company, DBS Vickers, Bloomberg Finance L.P
Page 21
www.dbsvickers.com
ed: TH / sa: MA
Kalbe Farma
Defensive play Healthcare spending to support LT growth
We favour Kalbe Farma not only as a consumer stock but From a macro perspective, the healthcare industry’s longer- also as a defensive stock for investors who are looking for
term outlook is supported by a structural shift, with the shelter in an uncertain environment. While Kalbe is not
introduction of a universal healthcare plan (BPJS) which will immune to the challenging macro environment, the
cover all Indonesians by 2019 (from just 50% in 2014). company has been a consistent performer and was able to sustain its operating margin at mid- to high-teen levels even
As such, healthcare spending is expected to sustain and grow during 2008-09. Moreover, Kalbe has a healthy balance
in excess of 10% until 2017, according to a BMI report. Using sheet with a net cash position of almost Rp1tr.
the case study of Thailand, there is a potential for significant long-term boost in healthcare spending in Indonesia.
Market leadership. Kalbe has been the pharmaceutical Healthcare spending in Thailand has more than tripled in a industry leader with a 12% market shares (FY13) in
decade since its introduction.
Indonesia. Moreover, Kalbe is also tops in the prescription drug market with 15% of the pie (FY13), supported by
For Kalbe, the main beneficiary of BPJS will be its prescription the largest marketing team across the country.
drugs business. However, we expect the first phase of the implementation to be slow and the impact to be minimal to
Growing faster than the industry. Kalbe has been able to Kalbe. Kalbe expects a small incremental business (just an grow faster than the industry at a 15% CAGR from
additional 1-2% per annum) for its unbranded generic 2009-13. Meanwhile, the pharmaceutical industry itself
products. Moreover, generic drugs have lower margins and has been growing steadily at a CAGR of almost 11% in
hence Kalbe will maintain a balanced mix to keep its margins the same period.
high.
New products. The company is well positioned for future National universal coverage (JKN) roadmap growth with product expansions such as oncology and nutrition. Kalbe also plans to expand into stem cells and genomics as part of its future pipelines.
(2019) 270m
Healthy margin and profit. Despite the revenue volatility,
100% coverage
Kalbe has a solid track record in maintaining its margin
and profitability at mid to high teen. The company was
120m
able to maintain its margin at 48% in FY13 despite a
50% coverage
20+% depreciation in the rupiah.
( 2012) 76.4m 30% coverage
Operating margin and revenue Source: Roadmap to National Health Insurance 2012 – 2019
Upgrade to BUY
We are upgrading Kalbe Farma from HOLD to BUY with a new
price target of Rp1,900 (Rp1,390 previously). We upgrade Kalbe for the following reasons:
The structural story on universal healthcare plan
which will support the longer-term outlook for the
industry.
Stable and resilient business, especially in the
pharmaceutical and health-related products.
Revenue (RHS)
EBIT margin (LHS)
Proven ability to sustain margins over the last several Source: DBS Vickers years through strong brand name and pricing power.
Our new price target of Rp1,900 is based on 34x FY15F PE and the multiple is at a 10% discount to Unilever's 38x. While we reckon that Kalbe's valuation is expensive, the premium is justified by its leadership in pharma sector and solid results even in tough times, akin to Unilever’s resilient performance.
Page 5
Indonesia Healthcare Sector
Kalbe Farma
Income Statement (Rp bn)
Balance Sheet (Rp bn)
FY Dec
2014F 2015F 2016F Turnover 16,002 18,506 21,405
2,926 3,739 3,846 3,919 Cost of Goods Sold
Net Fixed Assets
42 42 42 42 Gross Profit
Invts in Associates & JVs
835 820 804 Other Opng (Exp)/Inc
Other LT Assets
1,615 1,635 2,693 3,800 Operating Profit
Cash & ST Invts
2,145 2,468 2,854 3,246 Associates & JV Inc
Other Non Opg (Exp)/Inc 2 3 4 4 Debtors
684 684 684 Net Interest (Exp)/Inc
0 0 0 0 Other Current Assets
12,962 14,785 16,899 Exceptional Gain/(Loss) 0 0 0 0 Pre-tax Profit
Total Assets
ST Debt
1,152 1,245 1,442 1,651 Minority Interest
1,511 1,001 1,041 Preference Dividend
Other Current Liab
000 Net Profit
0 LT Debt
0 0 0 Net Profit before Except. 1,920 2,259 2,598
Other LT Liabilities
Shareholder’s Equity
Minority Interests
Total Cap. & Liab.
13,255 14,568 16,722 Sales Gth (%) 17.3 15.7 15.7 15.2
EBITDA Gth (%) 13.8 22.4 16.1 16.0 Non-Cash Wkg. Capital
Opg Profit Gth (%) 14.9 22.3 15.6 16.9 Net Cash/(Debt)
1,031 1,051 2,109 3,216 Net Profit Gth (%) 10.7 17.7 15.0 17.2 Effective Tax Rate (%) 23.4 25.5 25.5 25.0
Cash Flow Statement (Rp bn)
Rates & Ratio
FY Dec
2014F 2015F 2016F Pre-Tax Profit
48.2 Dep. & Amort.
Gross Margins (%)
17.1 Tax Paid
Opg Profit Margin (%)
Net Profit Margin (%)
25.5 Chg in Wkg.Cap. 0 (733) (477)
Assoc. & JV Inc/(loss) 0 0 0 0 ROAE (%)
19.2 Other Operating CF
24.2 Net Operating CF
40.0 Capital Exp.(net)
Div Payout Ratio (%)
Net Interest Cover (x)
NM 361.6 124.8
1.6 Invts in Assoc. & JV
Other Invts.(net) 82 0 0 0 Asset Turnover (x)
45.1 Div from Assoc & JV
0 0 0 0 Debtors Turn (avg days)
45.8 Other Investing CF
2 0 0 0 Creditors Turn (avg days)
117.2 130.0 126.0 122.1 Net Investing CF
0 0 0 0 Inventory Turn (avg days)
3.7 Div Paid
Current Ratio (x)
2.2 Chg in Gross Debt
Quick Ratio (x)
CASH CASH CASH CASH Capital Issues
0 0 0 Net Debt/Equity (X)
Cash Cash Cash Cash Other Financing CF
0 0 0 0 Net Debt/Equity ex MI (X)
85.6 Net Financing CF
0 0 0 0 Capex to Debt (%)
Z-Score (X)
69 Chg in Cash
Currency Adjustments 96 0 0 0 N. Cash/(Debt)PS (Rp)
Opg CFPS (Rp)
76 Free CFPS (Rp) (1) 20 45
50 Quarterly / Interim Income Statement (Rp bn)
Segmental Breakdown / Assumptions
FY Dec 2013A 2014F 2015F 2016F Turnover 3,931 4,019 4,562
Revenues (Rp bn)
Cost of Goods Sold
Prescription 3,869 4,521 5,255 6,065 Gross Profit
2,505 2,903 3,369 3,871 Other Oper. (Exp)/Inc
Consumer Health
3,792 4,698 5,777 7,051 Operating Profit
5,836 6,385 7,004 7,680 Other Non Opg (Exp)/Inc
Distribution & Logistics
12 Others N/A N/A N/A N/A Associates & JV Inc
16,002 18,506 21,405 24,666 Net Interest (Exp)/Inc 10 (1)
0 0 0 0 Total
1 2 Gross Profit (Rp bn)
Exceptional Gain/(Loss) 0 0 0 0 Prescription 2,353 2,713 3,102 3,519 Pre-tax Profit
Consumer Health
2,287 2,787 3,369 4,112 Minority Interest
1,704 1,864 2,045 2,242 Net Profit
Distribution & Logistics
Others N/A N/A N/A N/A Net profit bef Except. 478 444 553
Gross Profit Margins (%)
Prescription 60.8 60.0 59.0
52.3 EBITDA Gth (%) 10.1 (5.7) 15.3
Sales Gth (%) 12.6 2.2 13.5 (10.9)
Consumer Health
58.3 Opg Profit Gth (%) 10.7 (2.9) 15.9
Nutritionals 60.3 59.3 58.3
29.2 Net Profit Gth (%) 7.6 (7.1) 24.6
Distribution & Logistics
Others N/A N/A N/A N/A
Gross Margins (%) 49.2 48.5 46.2 47.8 Total
48.2 Opg Profit Margins (%) 16.2 15.4 15.7 15.8 Net Profit Margins (%) 12.2 11.1 12.1 12.1
Source: Company, DBS Vickers
Page 23
Indonesia Healthcare Sector
Kimia Farma Persero
Bloomberg: KAEF IJ | Reuters: KAEF.JK Refer to important disclosures at the end of this
report
NOT RATED Rp950 JCI : 4,842.13 All eyes on potential merger
Price Target : Not Rated
Involved in entire value chain from
Potential Catalyst: Merger with Indofarma (INAF)
manufacturing to retail
Analyst
Negatively impacted by weakening IDR
Edward Tanuwijaya +6221 3003 4932 [email protected]
Potential merger with Indofarma
Trading on reasonable valuations
From manufacturing to retail. Kimia Farma
Price Relative
Persero (KAEF) derives revenue from three core
Rp
Relative Index
businesses - manufacturing (22%), distribution (40%)
and retail (37%). Manufacturing segment generates
high single digit net profit margin, while margins are
low for the other two segments.
Negatively impacted by weakening IDR. KAEF
112.5 Jun-10 Jun-11
Jun-14 78 (like most of pharmaceuticals companies in Indonesia)
Jun-12
Jun-13
imports c.90% of raw materials required for production. COGS went up significantly by 20% y-o-y
Kimia Farma Persero (LHS)
Relative JCI INDEX (RHS)
Forecasts and Valuation
(vs historical average of 7%) in 2013 and this led to a
3 ppt reduction in consolidated GP margins to
Pre-tax Profit
Brighter after the merger? Recent changes in
Net Profit
Indofarma (INAF)’s Board of Directors, which now
Net Pft (Pre Ex.)