Gudang Garam Stocks Start to Improve After Correcting Today


Gudang Garam shares are now starting to rise from their correction zone today. This can be seen from the closing of trading session 1 at 11.30 WIB.

This stock rose by 0.58% to the level of Rp. 30,500/unit.

The transaction value reached Rp 30.35 billion with a traded volume of 985.4 thousand shares. PT Gudang Garam Tbk or GGRM started to rise when the Composite Stock Price Index (IHSG) closed down from 2% in its first trading session.

Even foreign investors are recorded to have collected these shares, which amounted to Rp 4.46 billion in the regular market. In conclusion, today’s GGRM shares started to rise after a correction of 0.33% throughout the year.

The rise of Gudang Garam shares occurred when the company recorded a decline in its net profit in the first quarter of 2022 at this time.

Although the majority of issuers of cigarette producers in our country have declined, their net profit has been decreasing since the first 3 months of 2022.

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Gudang Garam Stocks Start To Rise By Mirae Asset

PT Mirae Asset Sekuritas Indonesia increased its recommendation to trading buy for shares of cigarette issuer PT Gudang Garam Tbk (GGRM). This was done due to the increase in excise on tobacco products on January 1, 2022.

The increase in excise duty on the price of tier 1 machine-made kretek cigarettes by 13.9% is better than the tax assumption of 16.9%. Meanwhile, the excise duty on hand-rolled kretek cigarettes actually rose 3.5% from the assumption.

Even though this is the case, the contribution of hand-rolled kretek cigarettes from GGRM’s shares is less than 10%, which has little impact. With excise fees that are lower than the estimated gross profit margin (GPM) for GGRM shares of 11% to 11.7%.

In addition, estimate bottom line or net profit increased to 13.5% or Rp 5.92 trillion from Rp 5.2%. Mirae Asset Sekuritas increases its recommendation from hold going to buy.

This is also indicated by the recent decline in Gudang Garam’s shares. The target price for GGRM shares is IDR 35,400, where previously it was only IDR 33,000.

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GGRM Share Net Profit Decrease

The rise of Gudang Garam shares from the correction recorded a decrease in net profit for 2022. The decline in the company’s net profit occurred due to reduced company revenues.

During the three months since 2022. The income of issuers producing tobacco products decreased 1.53% to Rp 29,290 at the end of March 2022.

Gudang Garam’s share income decreased. Even the price range for the export of tobacco products is Rp 437.79 billion.

Meanwhile, the drop in domestic cigarette sales to Rp 346.93 billion.

The cost of shares increased to Rp. 88.541 trillion or decreased by 1.58%. The increase in cigarette excise tax was 12.18%.

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Although some analyzes say if the finances are in a slump. However, many analysts say that some analyzes give an excessive value, indicating that the issuer’s demand is still in a limited environment.

Meanwhile, investors tend to rotate which also encourages the movement of consumer stocks. Including Gudang Garam shares, which started to rise today from the correction zone.


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