Industri Jamu Dan Farmasi Sido Muncul's Margins Likely Under Pressure in 2Q — Market Talk

Industri Jamu Dan Farmasi Sido Muncul's earnings margins are likely to remain pressured into 2Q, CGS International analysts say in a research report. Given higher oil prices, the Indonesian company's oil-linked costs are mainly reflected in packaging, which accounts for around 20% of its cost of goods sold. Given underlying cost pressures, the company revised its 2026 revenue and net-profit-after-tax guidance from a 5%-8% increase to flat. The brokerage reduces its 2026-2028 sales forecasts for the herbal medicine producer by 5%-6%. It downgrades the stock's rating to hold from add and lowers the target price to 370.00 rupiah from 580.00 rupiah. Shares are 2.1% lower at 366.00 rupiah. (ronnie.harui@wsj.com)