01 September 2025
SIDO’s Herbal Garden in Full Bloom
Market Commentary
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For years, SIDO Muncul has been a dependable herbal powerhouse, a steady garden that consistently produces harvests, season after season.
This year, the garden didn’t just grow; it bloomed spectacularly. In 2Q25, revenue shot up 23% year-on-year to Rp1.04 trillion, powered by a 47% surge in herbal sales as consumers stocked up on remedies during an unusually long flu season. By midyear, the company had already gathered Rp1.83 trillion in revenue, nearly half of its full-year target, prompting management to raise its FY25 growth guidance to over 5%.
The herbal segment is clearly the crown jewel. Sales blossomed to Rp716 billion, yet management remains conservative, penciling in just 3% full-year growth. They know that not every season will be this fruitful, especially with softer consumer purchasing power and the non-staple nature of their products.
Beyond just planting seeds, SIDO has been generous with its harvest. In FY24, shareholders received Rp1.47 trillion through dividends and share buybacks, a sign of a company that rewards those who nurture it.
Under its Rp300 billion buyback program, SIDO has already plucked Rp116 billion worth of shares at an attractive Rp535 average price. At current levels, investors can expect a dividend yield of around 7.5%, far above the sector’s modest 3%, a bumper crop for anyone holding shares.
This isn’t just a local garden anymore. Exports are sprouting rapidly, up 17% in 1H25, lifting their share of total revenue to nearly 10%. With strong roots in Malaysia, the Philippines, and Nigeria, and new shoots emerging in Africa and Southeast Asia, SIDO’s reach is spreading well beyond home soil.
With a dominant 73% share of the domestic herbal market, a resilient business model, and analysts maintaining a “Buy” with a target price of Rp630 (15.5x 2025F P/E), SIDO is poised for continued growth. It’s a company that not only weathers storms but turns seasonal winds into tailwinds, offering both solid earnings and a dividend yield worth harvesting.
This year, the garden didn’t just grow; it bloomed spectacularly. In 2Q25, revenue shot up 23% year-on-year to Rp1.04 trillion, powered by a 47% surge in herbal sales as consumers stocked up on remedies during an unusually long flu season. By midyear, the company had already gathered Rp1.83 trillion in revenue, nearly half of its full-year target, prompting management to raise its FY25 growth guidance to over 5%.
The herbal segment is clearly the crown jewel. Sales blossomed to Rp716 billion, yet management remains conservative, penciling in just 3% full-year growth. They know that not every season will be this fruitful, especially with softer consumer purchasing power and the non-staple nature of their products.
Beyond just planting seeds, SIDO has been generous with its harvest. In FY24, shareholders received Rp1.47 trillion through dividends and share buybacks, a sign of a company that rewards those who nurture it.
Under its Rp300 billion buyback program, SIDO has already plucked Rp116 billion worth of shares at an attractive Rp535 average price. At current levels, investors can expect a dividend yield of around 7.5%, far above the sector’s modest 3%, a bumper crop for anyone holding shares.
This isn’t just a local garden anymore. Exports are sprouting rapidly, up 17% in 1H25, lifting their share of total revenue to nearly 10%. With strong roots in Malaysia, the Philippines, and Nigeria, and new shoots emerging in Africa and Southeast Asia, SIDO’s reach is spreading well beyond home soil.
With a dominant 73% share of the domestic herbal market, a resilient business model, and analysts maintaining a “Buy” with a target price of Rp630 (15.5x 2025F P/E), SIDO is poised for continued growth. It’s a company that not only weathers storms but turns seasonal winds into tailwinds, offering both solid earnings and a dividend yield worth harvesting.
Written by Boris, the Broker
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