ACES is activating a new growth engine through NEKA, a smaller and more efficient store format aimed at the lower middle segment. The concept is designed to be closer to everyday consumer needs, easier to execute, and highly scalable, especially for expansion into tier 2 and tier 3 cities where compact, accessible formats tend to resonate better. With a target of 10 NEKA stores by end 2025, the rollout looks intentional and could become a meaningful catalyst to revive traffic after a softer period for the core ACES network.

Operationally, early signs of improvement are emerging. October sales inched up to IDR 681 billion, bringing 10M25 sales to IDR 7 trillion. While SSSG remains negative, ACES is entering the typically strong year end season, supported by the addition of 10 new stores that should help broaden reach and drive higher footfall. At the same time, store productivity and workforce efficiency continue to trend upward, suggesting that internal execution and cost control are gradually strengthening the company’s operational foundation.
 

From a profitability standpoint, 2025 is still a transition year, with earnings expected to decline due to softer purchasing power and higher rebranding expenses. However, 2026 is projected to be the turning point, with earnings potentially growing around 15% as consumption recovers, rebranding costs normalize, and new store formats begin contributing more meaningfully.
 

Backed by a solid cash position, consistent dividends, and more attractive valuations versus peers, our analyst views ACES as having a clear and convincing route to recovery.