Contact our analyst Eka

12 February 2025

Price Rp 200

Investment Considerations

Increased Product Launches at Inspired Home & Living Show
LIVE hosted the Inspired Home & Living Show (IHLS) in October 2024, a bazaar and private expo featuring household products. During IHLS 2024, the company launched several new products across different categories, including:
•Klen – Dustbin collections
•Big Block – Lunch sets
•t+ Active – Water bottle tumblers
•Maamo – Cutlery and children’s blankets
•KEI Living – Cutlery supplies
•Lungo – Lunch kits, bags, and luggage

This event boosted LIVE’s sales, contributing up to 15% of total revenue.
Moving forward, the company plans to expand through acquisitions and explore potential joint ventures.
Additionally, LIVE will increase the frequency of events like IHLS to strengthen brand awareness, maintain relationships with partners, and drive sales growth.

Sustained Top-Line Growth
LIVE reported positive sales growth in Q3 2024, with revenue increasing 8.8% YoY and 3.1% QoQ to IDR 59.27 billion.
The trading segment grew significantly by 47.0% YoY to IDR 38.7 billion, remaining the largest revenue contributor at 60.1% of total revenue in Q3 2024.
The manufacturing segment declined by 22.3% YoY to IDR 25.62 billion in the same period.
For the first nine months of 2024 (9M2024), LIVE’s total revenue increased by 17.0% YoY to IDR 184.9 billion:
Manufacturing segment revenue surged by 80% YoY to IDR 76 billion.
Trading segment revenue grew by 5.1% YoY to IDR 127.4 billion.

Live also reported strong margin Improvements:
The EBIT margin for the trading segment improved to 17.6% in 9M2024, up from 13.3% in 9M2023.
The manufacturing segment’s EBIT margin improved from -5.6% to -1.6%. We anticipate higher Q4 2024 sales, driven by the IHLS event in October, and moderate growth in 2025, with revenue projected to reach IDR 326 billion.

Margin Expansion
LIVE’s bottom-line performance showed substantial improvement:
•Q3 2024 net profit reached IDR 1.46 billion.
•9M2024 net profit surged 48.8% YoY to IDR 21.2 billion, with a net profit margin of 11.5%.

Cost of goods sold (COGS) decreased 1.0% YoY to IDR 92.7 billion in 9M2024, resulting in:
•Gross profit growth of 43.1% YoY to IDR 92.2 billion.
•Gross margin expansion to 49.9% in 9M2024.
•Operating profit growth of 61.8% YoY to IDR 35.5 billion, with an operating margin of 19.2%.

Valuation
LIVE is currently trading at 9M2024 PER and PBV ratio of 37.8x and 2,59x compared to the industry average of 37x.
Source: Company and Binaartha