Kiwoom Research | 1H26 Equity Update - 24 August 2026 PT. Industri Jamu dan Farmasi Sido Muncul Tbk. (SIDO) 1H26 Earnings Miss Amid Herbal Business Weakness Key Takeaways: - 1H26 Miss Expectations. Revenue and net profit declined 20% and 44% YoY, mainly due to distributor inventory normalization in Herbal & Supplements. - F&B & Exports Support Growth. F&B revenue grew 11% YoY, while exports increased to 13% of total revenue, led by Malaysia, the Philippines, and Nigeria. - Gradual Recovery with Margin Pressure. 2H26 recovery should be supported by distribution normalization, F&B, new products, and exports, while higher costs remain a key risk. Recommendation: "Hold” Based on our estimates, SIDO’s revenue is expected to decline 4.5% YoY in 2026F to IDR3.9tn before recovering 3.1% in 2027F and 6.6% in 2028F. Net profit is forecast to decline 8.3% YoY to IDR1.1tn in 2026F, while NPM is expected to decline at around 29%. At 2026F, SIDO trades at 10.5x P/E, 3.6x P/BV, and 7.1x EV/EBITDA, with an attractive 9.4% dividend yield. Key downside risks include slower-than-expected herbal volume recovery, prolonged distributor inventory normalization, higher raw material and packaging costs, rising A&P and logistics expenses, weaker consumer spending, execution risks on new products and exports, and intensifying competition. Abdul Azis Setyo Wibowo Equity Research KIWOOM SEKURITAS INDONESIA