MARK 1Q22 Earning Report (June 6 2022) | 02 August 2022
MARK reported another satisfactory 1Q22 results Some of the notable
1Q22 Revenue: Steady QoQ Revenue stream
MARK 1Q22 revenue reached IDR361bn, +66% YoY compared to 1Q21. On
QoQ basis, MARK 1Q22 revenue is maintained at 361B which was around
the same amount of revenue earned in 4Q21.
1Q22 Margin: Steady margin from capacity expansion
As the company expands its scale, the impact towards margin have been
steady. MARK’s 1Q21 Gross Margin/Operating Margin/Net Margin has
reached 56.8%/47.4%/34.8%. An improvement by 8.2ppts/6.6ppts/
2.6%ppts QoQ. This result proves that capacity expansions undertaken by
the company did yields a better margin.
1Q22 Net income: Significant YoY growth
Combination of strong revenue growth and improving margin has resulted in
Q122 net income of IDR392bn, +81.3% YoY. QoQ Net income also improved
significantly compared to 3Q21/4Q21 of -4,1% to an even +8% this QoQ.
Record High Dividend payout: Record high payout
With the company realizing its plan to increase its dividend payout ratio from
the historical range of 30%-40% to 50% in 2022, resulting a ~4% dividend
yield this year, Dividend will be paid earlier than expected (previous 2H22)
to 1H22. Dividend distributed per share for FY21 will be Rp.50/Share (Vs.
FY2021 Rp.15/Share). Worth to note that that this dividend is amounted to
MARK’s IPO Price back in 2017, Truly a milestone for the Company.
Maintain BUY, target price at IDR2,000, 70% upside. We remain bullish
on MARK’s onward growth in 2022F. We maintain our previous target price
at IDR2,000, reflecting 16x 2022F EPS (vs Initiate TP: 13x EPS). We believe
this higher multiple is justified by MARK excellent growth and its upcoming
ESG initiatives such as upcycling defective formers and excess materials
into sanitary wares that will entice new investors. Risk to our call include
slower demand and supply chain issues.