Wismilak Inti Makmur (WIIM IJ) (Buy) - Growth on two horizons

Research evidence excerpt

Wismilak Inti Makmur (WIIM IJ) (Buy) - Growth on two horizons

Nomura Securities Malaysia Sdn Bhd

Wismilak Inti Makmur WIIM.JK WIIM IJ 8 June 2026

EQUITY: CONSUMER RELATED

RatingGrowth on two horizons Remains Buy

Target priceUndemanding valuation + strong earnings upside + high Increased from IDR 3,950ROE and dividend yield; maintain Buy; new IDR3,950 TP IDR 3,550

Attractive medium- and long-term growth story Closing5 June 2026price IDR 1,400

We project a strong medium-term net profit CAGR of 26% for WIIM over 2025-28F, driven by both

volume and price increase. In the medium term, we believe hand-rolled cigarettes (SKT) and filter Implied upside +182.1%

will contribute to higher volumes. WIIM has a distinguished product under Wismilak Slim brand,

which has more fruity flavors than peers, enabling the company to gain a wider reach among Market Cap (USD mn) 163.2

younger smokers. Currently, WIIM’s SKT annual production is at 1.1bn sticks (vs. 2bn maximum ADT (USD mn) 0.4

limit), which we believe provides significant room for growth. The filter business, on the other hand,

is the fastest-growing segment with a 54% sales CAGR over 2020-25 as filter products gain from Relative performance chart

the strong demand for cheaper cigarette brands. Meanwhile, on the pricing strategy, we believe it

will be mostly driven by ASP hikes in the SKM segment as the company has already hit the tier’s

maximum annual production of 3bn sticks. Currently, WIIM’s SKM price is ~15% lower than tier-1

brands on an average, providing more space for price adjustments. In the long run, we believe the

filter business would be the main growth driver as there is no limitation on production, while we

expect the demand from smaller- and mid-sized cigarette players to continue to sustain. We also