Homeco Victoria (LIVE) Listing Soon, Here’s the Stock Outlook According to Analysts

With more than 12 years of experience, LIVE claims to have a wide sales range, covering almost all regions in Indonesia.

IDXChannel – The Initial Public Offering (IPO) process carried out by PT Homeco Victoria Makmur Tbk (LIVE) continues to run and is getting closer to the final phase.

This is marked by the process of listing the company’s shares, which will be carried out on Monday (12/2/2024).

Related to this, Binaarta Sekuritas Analyst, Valerie Mannuela, provides an informative review of the prospects of the household appliances stock.

“The company has a competitive advantage compared to similar companies in its field, with the expectation that the PE ratio is below the industry average. The Home Appliances industry has an average maximum PE ratio of 16.3 times,” said Valerie, in her official statement.

Meanwhile, LIVE’s initial share price has been set at Rp148 per share. Valerie projects that the company’s PE ratio will reach 9.9 times in 2024P, making the company’s PE lower than the industry’s average PER.

LIVE itself was established in 2012, with a main focus on brand management and sales of home appliances and equipment products in Indonesia.

The Company has a wide range of product categories, including kitchenware, drinking and eating utensils, cookware, stationery and drawing tools, children’s games, and wet wipes.

In addition, the Company is also a holding company that owns several subsidiaries. The Company has built a reputation as one of the best sellers and manufacturers of household appliances and equipment in the industry.

With more than 12 years of experience, LIVE claims to have a wide sales reach, covering almost all regions in Indonesia. The Company’s sales through modern markets reach 40,000 points of sale, while in traditional markets, more than 700 distribution partners are involved.

LIVE’s product portfolio is divided into three segments, namely the upper segment, mid-segment, and mass products, with several well-known brands, such as BerlingerHaus, KEI, Scandic, Wiggle, and others.

In addition, through its subsidiary, PT Trisinar Indopratama (Technoplast/TSI), LIVe has also established business to business (B2B) cooperation with well-known brands, such as BT21, Line, McDonald’s, Starbucks, and others.

In terms of financial performance, LIVE has shown consistent improvement in its profitability ratio over the period 2020 to July 2023, with the Company recording a 94.7 percent increase in revenue from 2020 to 2022. This was due to the company’s subsidiary’s participation in providing vaccine carriers for the Government of Indonesia in 2021.

Going forward, LIVE projects that the Company’s revenue will continue to grow with a target CAGR 2022A-20227F of 29.8 percent or Rp1.1 trillion by 2027.

“This reflects the company’s ability to generate increasing profits. On the other hand, the company’s ability to pay off long-term obligations also shows a positive trend, driven by strong EBITDA recovery,” Valerie said.

The Company’s Debt to EBITDA ratio reached 3.06 in July 2023, up from 1.94 at the end of 2022. With promising prospects and a strong position in the home appliance market, LIVe is ready for its initial listing on the IDX.

“Investors should consider the long-term growth potential offered by the company,” Valerie emphasized. (TSA)