Daya Intiguna Yasa Likely Has High Growth Opportunity in Indonesia — Market Talk

Daya Intiguna Yasa, also known as MR. D.I.Y. Indonesia, likely has high growth opportunity in Indonesia, Maybank Sekurtias Indonesia analysts say in a research report. It has the ability to operate small-format yet widely scattered modern convenience-stores across Indonesia, the analyst notes. This concept involves selling fast-moving daily appliances and trendy goods in untapped outskirt areas of major cities and tier-2 and -3 cities with attractive socio-economic and geographic profiles, the analyst says. The Indonesian company's robust EBIT margins of 20%-22% positions it as a lucrative retailer with a competitive business cost curve. The brokerage initiates coverage of the stock with a buy rating and a target price of 1,200 rupiah. Shares are 0.5% higher at 990 rupiah. (ronnie.harui@wsj.com)