Unilever Indonesia (UNVR IJ): Buy: Signs of stabilisation

Research evidence excerpt

Unilever Indonesia (UNVR IJ): Buy: Signs of stabilisation

28 July 2026

Unilever Indonesia (UNVR IJ) Equities Personal Products

Buy: Signs of stabilisation Indonesia

◆ 2Q26 points to a stabilising company

MAINTAIN BUY

◆ 2026 margin concerns remain, but the extent is milder than

previously thought TARGET PRICE (IDR) PREVIOUS TARGET (IDR)

2250.00 2200.00

◆ Maintain Buy with a higher TP of IDR2,250 (from IDR2,200)

SHARE PRICE (IDR) UPSIDE/DOWNSIDE

Signs of stabilisation: We think 2Q26 presents a decent set of results given the 1680.00 +33.9%

headwinds going into the results (such as weakening IDR vs USD, rising input costs, (as of 27 Jul 2026)

in particular palm oil, and 2Q being a seasonally weak quarter) and the easier base

MARKET DATA

comparison (2Q25 was a weak quarter). Management shared that its 7% revenue Market cap (IDRb) 64,092 Free float 15%

growth in 1H26, which is growing ahead of low-single-digit growth recorded in the Market cap (USDm) 3,560 BBG UNVR IJ

3m ADTV (USDm) 2 RIC UNVR.JK

broader market, is driven by strong brand-building, innovation, and higher distributor

numbers. Going into 2H26, management continues to emphasise calibrated pricing, FINANCIALS AND RATIOS (IDR)

Year to 12/2025a 12/2026e 12/2027e 12/2028e

rather than an across-the-board price increases, highlighting that penetration is a HSBC EPS 92.87 98.09 103.85 105.01

priority over chasing margins at the expense of volume. HSBC EPS (prev) 92.87 94.00 99.67 102.18

Change (%) 0.0 4.4 4.2 2.8

We expect margins to remain under pressure for the rest of 2026: However, we Consensus EPS 118.22 107.31 111.06 114.90

PE (x) 18.1 17.1 16.2 16.0

think the extent of the margin pressure may not be as severe as previously expected Dividend yield (%) 8.0 11.0 7.2 6.2