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Page 1
EQUITY RESEARCH
OMED - Company Update – 1 September 2023
CIPTADANA SEKURITAS ASIA
BUY Jayamas Medica Industri
After pandemic, comes pollution
TP: Rp220 (+22.9%)
Sector Healthcare Demand expected to rebound
After Covid-19 pandemic subsides, Indonesia is now facing severe air pollution in Jakarta.
Bloomberg Ticker OMED IJ
According to IQAir, Jakarta ranks as the city with the worst air quality index (AQI) among
all other cities in the world. Jakarta's AQI records 173, followed by Dhaka, Bangladesh
Share Price Performance
(160). Based on the Indonesian Life Insurance Association (AAJI), cases of acute
Last price (Rp) 179 respiratory infections (ISPA) have shifted from being ranked among the top 15 causes in
Avg. daily T/O (Rpbn/USDmn) 4.4/0.3 2021 to becoming one of the top 5 causes in 2022. Currently, ISPA holds the top position as
the leading cause for healthcare claims. This situation could potentially benefit Jayamas
3m 6m 12m Medica Industri (OMED), as they are a provider not only of medical masks but also of
Absolute (%) -8.7 -13.1 -12.3 medical devices. Consequently, the demand for its products will increase.
Relative to JCI (%) -13.5 -15.3 -10.2 Rising customers indicate higher demand
52w High/Low price (Rp) 280/149 In 2Q23, OMED has six categories of its customers: distributor (21.5% of total customers),
hospital (21.3%), clinics and laboratories (10.7%), retail customers (37.5%), and
governmental entities (9%). All number of customers expanded where the governmental
300 7,400 entities led the way by recording 77.3% QoQ. This shows that OMED is able to gain more
trust from the government.
7,200
250
7,000
Ample room for future development
200 6,800 In 1H23, OMED has already used its IPO raised cash as much as Rp134.7 billion. This is
6,600 equivalent to 17.3% of its net IPO proceeds of Rp780.5 billion. OMED has already used 23%
150 of its allocation, where the cash has already been used for the establishment of new
6,400
building, acquisition of additional machinery and equipment and also capital expenditures
100 6,200 totaling Rp129.4 bn. For its subsidiary PT Intisumber Hasil Sempurna Global (IHSG), it has
Nov-22 Feb-23 May-23 Aug-23 spent Rp4.5 bn or 2.5% of its allocation for the expansion of distribution branches and the
OMED JCI Index (RHS) establishment of a national distribution center. For its other subsidiary, PT Inti Medicom
Retailindo (IMR), it has spent Rp0.8 bn or 2.1% of the allocation for the development of
online platforms and modules, IT infrastructure and expansion of retail branches. With idle
funds amounting to Rp645.8 bn, OMED still has ample room for expansion.
Outstanding shrs (mn) 5,330
Mkt. Cap (Rpbn/USDmn) 954/63 Lowering earnings expectation post weak 1H23 performance
Estimated free float (%) 15.0 During the post-pandemic normalization, we revised down our FY23F/24F of net sales by -
19.5%/-26.9% to Rp1.7 tn/Rp2.4 tn since in 1H23 OMED seems to fail translating the
Major shareholders higher demand of medical devices and supplies into sales. Its bottom line also came below
PT Intisumber Hasil Sempurna 83.3% our expectations, meeting only 32% of our 2023F. Thus, we slashed our 23F/24F net profit
by -34.9%/-32.6% to Rp225 bn/Rp279 bn.
Yacobus Jemmy Hartanto 0.9%
Siane Soetanto 0.9% Maintain BUY with 2024F TP of Rp220/sh
Despite of the weak performance in 1H23, we remain optimistic since the current
EPS Consensus structural reform is on its way, coupled with the air pollution issue. As we rolled over
valuation basis to FY24F, we come up with lower TP of Rp220/sh (prev. Rp295/sh), derived
Ciptadana Cons. % Diff
from PE multiple of 20.9x at +1 std dev. Our new TP offers 22.9% upside therefore we
2023F 8.3 12.8 -35.1 maintain BUY rating on OMED. Risks to our call: lack of awareness of people on air
pollution, tough competition.
2024F 10.3 15.3 -32.6
2025F 12.2 19.2 -36.4 Exhibit 1 : Financial Highlights
Year to 31 Dec 2021A 2022A 2023F 2024F 2025F
Revenue (Rpbn) 2,227 1,739 1,697 1,774 1,903
Operating profit (Rpbn) 736 365 293 362 425
Net profit (Rpbn) 563 286 225 279 330
EPS (Rp) 20.8 10.6 8.3 10.3 12.2
EPS growth (%) -58.4 -49.2 -21.4 24.2 18.4
Nicko Yosafat EV/EBITDA (x) 5.6 9.6 10.7 8.4 6.9
+62 21 2557 4800 ext.760 PER (x) 8.6 16.9 21.6 17.4 14.7
yosafatnicko@ciptadana.com PBV (x) 4.0 2.4 2.2 2.0 1.9
Dividend yield (%) 5.3 5.2 1.8 1.7 2.2
http://www.ciptadana.com ROE (%) 46.0 14.0 10.3 11.7 12.7
Source : OMED, Ciptadana Estimates
Please see analyst certification and other important disclosures at the back of this report 2
Page 2
EQUITY RESEARCH
OMED - Company Update – 1 September 2023
CIPTADANA SEKURITAS ASIA
Exhibit 2: Number of distributors Exhibit 3: Number of hospitals
3,500 70% 2,000 30%
56% 60% 24%
1,800 25%
3,000
50% 1,600 1,497 1,520
20%
2,500 40% 1,400
30% 15%
2,000 17% 1,200
20% 10%
1,535 1,537 1,000 4%
1,500 10% 5%
800
0% 0%
1,000 -10% 600
-26% 400 -9% -5%
-20%
500 -10%
-30% 200
0 -40% 0 -15%
2019 2020 2021 2022 1Q23 2Q23 2019 2020 2021 2022 1Q23
Distributors Distributors growth % Hospitals Hospitals growth %
Source : OMED, Ciptadana Sekuritas Source : OMED, Ciptadana Sekuritas
Exhibit 4: Number of clinic and laboratories Exhibit 5: Number of retailers
1,200 50% 4,000 13% 14%
44%
40% 3,500 12%
1,000
3,000 2,631 2,675
26% 763 30% 10%
800 740
2,500
20% 8%
6%
600 2,000 6%
10% 6%
1,500
400
0% 4%
1,000
200 -15% -10% 500 2%
0 -20% 0 0%
2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1Q23
Clinic & laboratories Clinic & laboratories growth % Retail Retail growth %
Source : OMED, Ciptadana Sekuritas Source : OMED, Ciptadana Sekuritas
Exhibit 6: Number of governmental entity Exhibit 7: Share of clients
1,600 17% 20% 100%
8% 9% 7% 11% 11% 11%
1,400 15% 90% 11%
15% 15% 11% 5% 9%
10% 80%
1,200
70%
5% 35% 39%
1,000 60% 37%
37% 36% 38%
0%
800 -5% 50%
640 -5%
600 40% 17%
-10% 22% 21%
361 30% 19% 20% 18%
400 -15%
-21% 20%
200 -20% 30%
10% 20% 20% 22% 23% 22%
0 -25% 0%
2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1Q23 2Q23
Government Government growth % Distributors Hospitals Retail Government Clinic & laboratories
Source : OMED, Ciptadana Sekuritas Source : OMED, Ciptadana Sekuritas
Please see analyst certification and other important disclosures at the back of this report 3
Page 3
EQUITY RESEARCH
OMED - Company Update – 1 September 2023
CIPTADANA SEKURITAS ASIA
Exhibit 8: OMED 1H23 results
Rp (bn) 1H23 1H22 YoY 2Q23 1Q23 QoQ 2023F 1H23/23F
Net revenue 811 813 -0.3% 414 397 4.4% 2,109 38.5%
COGS -547 -550 -0.6% -278 -269 3.5%
Gross profit 264 263 0.4% 136 128 6.5% 675 39.1%
Gross profit margin (%) 32.5 32.3 0.20 32.8 32.2 0.63
Operating expense -127 -103 23.1% -69 -58 18.0%
Operating profit 137 160 -14.4% 67 70 -3.2% 447 30.6%
Operating profit margin (%) 16.9 19.6 -2.77 16.2 17.5 -1.28
Other gains (losses) - net -8 7 n/a -2 -6 -70.6%
Finance income 19 6 205.2% 9 10 -4.5%
Finance costs -9 -10 -5.3% -5 -5 1.4%
Finance income (expense) - net 9 -4 n/a 4 5 -9.9%
Profit before tax 138 163 -15.2% 70 68 2.7% 447 30.8%
Income tax expense -26 -36 -26.6% -15 -11 37.4%
Minority interest -1 -2 -56.9% 0 -1 n/a
Net profit 111 125 -11.2% 54 56 -4.0% 345 32.0%
Net profit margin (%) 13.6 15.3 -1.68 13.1 14 -1.14
Rp (bn) 1H23 1H22 YoY 2Q23 1Q23 QoQ 2023F 2Q23/23F
Net revenue 811 450 80.4% 397 414 -4.2% 2,109 38.5%
Medical disposable and consumables 541 292 84.9% 266 275 -3.2% 1,132 47.8%
Antiseptic and dialysis 93 63 47.8% 57 37 54.4% 275 33.9%
Diagnostic and equipment 102 61 67.5% 50 53 -6.1% 374 27.4%
Biotechnology and laboratory 38 16 134.6% 21 17 20.7% 243 15.8%
Hospital furniture 11 7 48.8% 7 4 82.3% 46 24.2%
Walking aids and rehabilitation care 25 9 175.5% 14 11 24.1% 40 63.7%
Others 0 0 n/a 0 0 n/a 0 n/a
Source: OMED, Ciptadana Sekuritas
Exhibit 9: Forecast changes
Rp (bn) New 23F Old 23F Change New 24F Old 24F Change
Net revenue 1,697 2,109 -19.5% 1,774 2,426 -26.9%
COGS -1,221 -1,434 -14.9% -1,221 -1,632 -25.2%
Gross profit 477 675 -29.3% 553 794 -30.3%
GPM (%) 28.1 32.0 -3.90 31.2 32.7 -1.55
Operating profit 293 447 -34.3% 362 532 -32.0%
OPM (%) 17.3 21.2 -3.90 20.4 21.9 -1.54
Net profit 225 345 -34.9% 279 414 -32.6%
NPM (%) 13.2 16.4 -3.13 15.7 17.1 -1.32
Source: OMED, Ciptadana Sekuritas
Please see analyst certification and other important disclosures at the back of this report 4
Page 4
EQUITY RESEARCH
OMED - Company Update – 1 September 2023
CIPTADANA SEKURITAS ASIA
Exhibit 10: PER band
280
260
240
22.6x
220 20.9x
200 19.2x
180 17.4x
160 15.7x
140
Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 May-23 Jun-23 Jul-23 Aug-23
OMED stock price PER band
Source: Bloomberg, Ciptadana Sekuritas
Exhibit 11: ESG review
ESG aspects ESG-related opportunity or risk assessment
1. Installing solar panel on the roof of the new factories, National
Distribution Center (NDC), and warehouses to generate
Environmental sustainable electricity.
2. Promoting water-saving campaigns among employees.
3. Enhance digital record keeping minimizing paper waste.
1. Collaborating with BPJS Gresik and Sidoardjo for the provision
of free BPJS contributions to the surrounding people.
2. Donating 5 cartons of surgical mask to Yayasan Bhakti Moral
Social and wheelchairs to orphanage, hospitals, and schools nearby.
3. Vocational trainings for young talents in surrounding areas to
make sure the participants can get into labor market easier.
1. The Board of Commissioners has three members and one of
which is independent commissioners and one of the members
is female.
2. The Board of Director consists of four members and the
President Director is female.
Government 3. Developing internal whistle-blowing program for sexual
harassment prevention.
4. Forming a GCG unit in order to increase disclosure of OMED
activities to shareholders.
5. Number of work accident consistently zero from 2020-2022
Source: OMED
Please see analyst certification and other important disclosures at the back of this report 5
Page 5
EQUITY RESEARCH
OMED - Company Update – 1 September 2023
CIPTADANA SEKURITAS ASIA
Exhibit 12 - Income Statement
Year to 31 Dec (Rpbn) 2021A 2022A 2023F 2024F 2025F
Revenue 2,227 1,739 1,697 1,774 1,903
COGS -1,322 -1,187 -1,221 -1,221 -1,272
Gross profit 904 552 477 553 631
Oper. expenses -168 -188 -183 -192 -206
Oper. profit 736 365 293 362 425
EBITDA 755 388 350 440 522
Interest income 17 14 13 14 15
Interest expense -22 -21 -19 -20 -20
Other income (exp.) -2 14 4 5 8
Pre-tax profit 729 372 291 362 428
Income tax -159 -82 -63 -78 -93
Minority interest -8 -5 -3 -4 -5
Net profit 563 286 225 279 330
Exhibit 13 - Balance Sheet
Year to 31 Dec (Rpbn) 2021A 2022A 2023F 2024F 2025F
Cash & cash equivalent 838 1,331 1,302 1,352 1,440
Acct, receivables 182 187 163 170 182
Inventory 411 522 301 301 314
Other curr, asset 59 131 63 66 71
Total current asset 1,490 2,171 1,828 1,889 2,007
Fixed assets - net 197 216 683 799 892
Other non-curr.asset 39 96 71 88 103
Total asset 1,726 2,507 2,591 2,787 3,017
ST debt + curr. maturity 15 21 16 16 17
Acct, payable 177 191 124 124 129
Advances received 0 0 0 0 0
Other curr. liab 81 19 38 45 52
Long term debt 172 178 174 174 175
Other non-curr, liab, 37 28 35 33 32
Total liabilities 481 438 386 392 405
Shareholder equity 1,224 2,044 2,183 2,379 2,602
Minority interest 21 25 21 16 11
Total liab + SHE 1,726 2,507 2,591 2,787 3,017
Exhibit 14 - Per Share Data
(Rp) 2021A 2022A 2023F 2024F 2025F
EPS 20.8 10.6 8.3 10.3 12.2
BVPS 45.2 75.6 80.7 87.9 96.1
DPS 9.4 9.2 3.2 3.1 4.0
FCF per share 10.8 -16.6 11.9 4.9 7.2
Source : OMED, Ciptadana Estimates
Please see analyst certification and other important disclosures at the back of this report 6
Page 6
EQUITY RESEARCH
OMED - Company Update – 1 September 2023
CIPTADANA SEKURITAS ASIA
Exhibit 15 - Cash Flow
Year to 31 Dec (Rpbn) 2021A 2022A 2023F 2024F 2025F
Net income 563 286 225 279 330
Depreciation 19 24 56 78 97
Chg in working cap. -85 -236 266 -4 -17
Other -102 -458 311 -9 -9
CF-Oper activities 394 -384 858 343 401
Capital expenditure -83 -43 -523 -194 -191
Others -20 -22 -13 -17 -16
CF-Investing activities -103 -65 -536 -211 -207
Net change in debt 4 17 -10 1 2
Net change in equity 565 781 0 0 0
Dividend payment -255 -250 -86 -84 -107
Other financing -571 0 0 0 0
CF-Financing activities -256 547 -96 -83 -106
Net cash flow 36 98 226 50 89
Cash - begin of the year 697 733 831 1,057 1,107
Cash - end of the year 733 831 1,057 1,107 1,195
Exhibit 16 - Key Ratios
Year to 31 Dec 2021A 2022A 2023F 2024F 2025F
Growth
Revenue (%) 11.6 -21.9 -2.4 4.5 7.3
Operating profit (%) -13.4 -50.5 -19.5 23.2 17.6
Net profit (%) -17.9 -49.2 -21.4 24.2 18.4
Profitability Ratios
Gross margin (%) 40.6 31.8 28.1 31.2 33.1
Operating margin (%) 33.1 21.0 17.3 20.4 22.3
EBITDA margin (%) 33.9 22.3 20.6 24.8 27.5
Net margin (%) 25.3 16.4 13.2 15.7 17.4
ROA (%) 32.6 11.4 8.7 10.0 11.0
ROE (%) 46.0 14.0 10.3 11.7 12.7
Liquidity Ratios
Current ratio (x) 5.5 9.4 10.3 10.2 10.2
Quick ratio (x) 4.0 7.1 8.6 8.6 8.6
Cash conversion cycle (days) 0.0 0.0 0.0 0.0 0.0
Activity Ratio
Inventory turnover (days) 0.0 0.0 0.0 0.0 0.0
Receivable turnover (days) 0.0 0.0 0.0 0.0 0.0
Payable turnover (days) 0.0 0.0 0.0 0.0 0.0
Solvency Ratio
Interest cover (x) 34.1 18.6 18.0 22.5 26.5
Debt to equity ratio (x) 0.2 0.1 0.1 0.1 0.1
Net debt to equity (x) Net Cash Net Cash Net Cash Net Cash Net Cash
Source : OMED, Ciptadana Estimates
Please see analyst certification and other important disclosures at the back of this report 7
Page 7
EQUITY RESEARCH
OMED - Company Update – 1 September 2023
CIPTADANA SEKURITAS ASIA
EQUITY RESEARCH
HEAD OF RESEARCH ECONOMIST ANALYST
Arief Budiman Renno Prawira Erni Marsella Siahaan, CFA
Strategy, Automotive, Heavy Equipment, Economist Banking, Hospital
Construction, Oil & Gas and Shipping T +62 21 2557 4800 ext 735 T +62 21 2557 4800 ext 919
T +62 21 2557 4800 ext 819 E prawirarenno@ciptadana.com E siahaanerni@ciptadana.com
E budimanarief@ciptadana.com
ANALYST ANALYST ANALYST
Yasmin Soulisa Gani Thomas Radityo
Property, Plantations Telco, Tower, Media, Technology Coal, Metal Mining
T +62 21 2557 4800 ext 799 T +62 21 2557 4800 ext 734 T +62 21 2557 4800 ext 795
E soulisayasmin@ciptadana.com E gani@ciptadana.com E radityothomas@ciptadana.com
ANALYST ANALYST ANALYST
Putu Chantika Putri Nicko Yosafat Muhammad Gibran
Consumer, Cigarette Retail, Pharmaceutical Cement, Poultry, Toll road
T +62 21 2557 4800 ext 740 T +62 21 2557 4800 ext 760 T +62 21 2557 4800 ext 798
E putriputu@ciptadana.com E yosafatnicko@ciptadana.com E gibranmuhammad@ciptadana.com
TECHNICAL ANALYST RESEARCH ASSISTANT
Asrul Husni Sumarni
T +62 21 2557 4800 ext 780 T +62 21 2557 4800 ext 920
E husniasrul@ciptadana.com E sumarni@ciptadana.com
EQUITY SALES
DIRECTOR OF INSTITUTIONAL EQUITY SALES
Dadang Mulyana
Plaza ASIA Office Park unit 2
Jl. Jend. Sudirman Kav. 59
Jakarta - 12190
T +62 21 2557 4800 ext 838
F +62 21 2557 4900
E mulyanadadang@ciptadana.com
BRANCH OFFICES
JAKARTA - MANGGA DUA SURABAYA
Komplek Harco Mangga Dua Intiland Tower Surabaya
Rukan Blok C No.10 Ground Floor Suite 5 & 6
Jl. Mangga Dua Raya Jl. Panglima Sudirman 101-103
Jakarta - 10730 Surabaya - 60271
T +62 21 600 2850 T +62 31 534 3938
F +62 21 612 1049 F +62 31 534 3886
Please see analyst certification and other important disclosures at the back of this report 8
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EQUITY RESEARCH
OMED - Company Update – 1 September 2023
CIPTADANA SEKURITAS ASIA
Analyst Certification
Each contributor to this report hereby certifies that all the views expressed accurately reflect his or her personal views about the
companies, securities and all pertinent variables. It is also certified that the views and recommendations contained in this report are not
and will not be influenced by any part or all of his or her compensation.
Disclaimer
This report does not constitute an offer to buy or sell any security/instrument, invitation to offer or recommendation to enter into any
transaction. Nor are we acting in any other capacity as a fiduciary to you. When making and investment decision, you should determine,
without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these
risks) as well as the legal, tax and accounting characterizations and consequences of any such transaction. In this regard, by accepting this
report, you acknowledge that (a) we are not in the business of providing (and you are not relying on us for) legal, tax or accounting advice,
(b) there may be legal, tax or accounting risks associated with any transaction, (c) you should receive (and rely on) separate and qualified
legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting
advice (and any risks associated with any transaction and our disclaimer as to these matters.
The information contained in this report is based on material we believe to be reliable; however, we do not represent that it is accurate,
current, complete, or error free. Assumptions, estimates and opinions contained in this report constitute our judgment as of the date of the
document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and
there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. PT
CIPTADANA SECURITIES AND ITS AFFILIATES SPECIFICALLY DISCLAIMS ALL LIABILITY FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL OR
OTHER LOSSES OR DAMAGES INCLUDING LOSS OF PROFITS INCURRED BY YOU OR ANY THIRD PARTY THAT MAY ARISE FROM ANY
RELIANCE ON THIS REPORT OR FOR THE RELIABILITY, ACCURACY, COMPLETENESS OR TIMELINESS THEREOF.
Disclaimer: This document is not intended to be an offer, or a solicitation of an offer, to buy or sell relevant securities (i.e. securities
mentioned herein or of the same issuer and options, warrants or rights to or interest in any such securities). The information and opinions
contained in this document have been compiled from or arrived at in good faith from sources believed to be reliable. No representation or
warranty, expressed or implied, is made by PT CIPTADANA SECURITIES or any other member of the Ciptadana Capital, including any other
member of the Ciptadana Group of Companies from whom this document may be received, as to the accuracy or completeness of the
information contained herein. All opinions and estimates in this report constitute our judgment as of this date and there can be no
assurance that future results or events will be consistent with any such opinions, forecasts or estimates. The information in this document
is subject to change without notice; its accuracy is not guaranteed; and it may be incomplete or condensed.
Please see analyst certification and other important disclosures at the back of this report 9
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