？？ PT. Kalbe Farma Tbk. (KLBF) Growth Intact, Valuation Too Cheap to Ignore ♦？ Key Takeaways: • 1Q26 earnings were weighed by margin pressure, with net profit declining 4.4% YoY despite 9.4% YoY revenue growth, as higher raw material and packaging costs compressed margins. • Growth remained resilient, driven by Distribution & Logistics (+21.1% YoY) and Prescription Pharmaceuticals (+6.0% YoY), supported by Bayer partnership and resilient pharmaceutical demand. • Management withheld FY26 guidance, but we maintain our forecasts as 1Q26 revenue reached 27% of our FY26 estimate. We view the recent correction as excessive, with KLBF trading at 9.77x forward P/E, well below its -2SD valuation of 13.0x. ♦？ Recommendation: "BUY” We maintain our “BUY” recommendation on KLBF, with the target price revised down to IDR 970 (from IDR 1,070), implying a forward P/E of 15.7x and a PBV of 2.2x. Downside risks include weakening consumer purchasing power, intense market competition, as well as rising raw material and operating costs amid geopolitical pressures and currency depreciation. ？？ https://www.kiwoom.co.id/market/detailMarketReportMain?id=4902 ？？？？‍♂？ Abdul Azis Setyo Wibowo Equity Research ©？ KIWOOM SEKURITAS INDONESIA