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ACES Share Price Drops Since Its First Trading

ACES’s stock price weakened due to its less solid performance. This financial report has been recorded since the sale in the first half of 2022.

PT Ace Hardware Indonesia Tbk (ACES) at the close weakened at 1.41% in its first session. Yesterday August 1, 2022 showed at the level of 700/share.

Throughout 2022 ACES shares have fallen 45.31%. ACES’s declining stock price reflects investors’ expectations of its weaker performance.

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ACES Stock Price Weakens Throughout 2022

Indo Premier Sekuritas analysts also explained that there would be a weakening condition of ACES shares. However, the securities company itself has set a recommendation to buy ACES shares even though it has decreased continuously.

Actually, ACES shares showed poor fundamental performance or weakened. The falling stock price reflects investors’ expectations of ACES’ performance.

This financial report also includes research on stock sales in the first half of 2022.

PT Ace Hardware Tbk (ACES) earned a profit attributable to owners of the parent entity of Rp 242.39 billion as of June 30, 2022 yesterday.

However, there is a recent report from ACES shares showing net sales fell from Rp 3.39 trillion to Rp 3.31 trillion.

Meanwhile, ACES’ financial report during the first half of sales contracted 2.58% yoy.

Although cost of goods sold decreased by 1.78% to Rp 1.71 trillion, ACES’ gross profit still contracted to Rp 1.59 trillion, 3.42%.

Lower than the first semester of Rp 1.65 trillion. Profit for the period distributed to owners of the parent entity ACES decreased 12.47% to Rp 242.39 billion from Rp 276.93 billion in the same period this year.

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ACES Performance Below Consensus Estimate

The stock price of ACES in the first half of this year decreased despite an increase in visits to Ace Hardware outlets.

Gross profit also showed a decline in the first six months of the previous year. Although sales had an increase of 3.7% quarterly, EBIT margins fell in line with the increase in operating expenses.

It is estimated that the improvement in ACES shares will occur in the second half of 2022 trading. However, the high stock of goods will actually be a challenge for the company’s performance.

The inventory level of WCES goods itself is still quite high, namely 249 days compared to 205 days in the previous period. This is due to the pandemic which is likely to hinder the company’s actions to add new stock.

The existence of this condition also does not rule out the possibility if the company adds discounts even though it has a negative impact on gross profit margins.

Although the sale of ACES’s shares weakened, it did not mean that its share price decreased.

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Based on this information and the existing conditions, Indo Premier still recommends buying ACES shares. This is as Kevie Aditya and Andrianto Saputra have explained.

It’s just that the target price for ACES shares is still relatively low, from Rp 1,250 to Rp 900. (R10/HR-Online)