ACES IJ / ACES.JK | OUTPERFORM - Maintained | Rp630.00 - TP: Rp780.00

REMINDER ACES : ACES IJ / ACES.JK | OUTPERFORM - Maintained | Rp630.00 - TP: Rp780.00

Mkt.Cap: US$935.90m | Avg.Daily Vol: US$1.24m | Free Float: 40.00%

Retail | Author(s): Linda LAUWIRA +62 (21) 30061734, Dewinta SUMARTONO 

Oct sales were weak as Aces' biannual 'Boom' sale was shifted to Sep while cannibalization ate into SSSG for Java stores. Store expansion is on track and is likely to exceed earlier guidance. We have scaled back our sales forecasts for a more conservative view on SSSG. The impact on earnings and our target price (21x CY15 P/E) is only 1-4% because margins appear stronger than expected and higher interest rates will benefit Aces given its cash hoard. Aces' good execution, strong brand and robust balance sheet underpin our Outperform call.