Jakarta \u2014 The share price of PT Erajaya Swasembada Tbk (ERAA) has\nrisen sharply over the past month despite market volatility. Despite the\nsignificant recent gains, analysts continue to recommend the purchase of\nERAA shares.<\/p>\n
The retail and electronic device distribution company, which focuses\non telecommunications-related products, is predicted to maintain strong\nperformance through the end of 2026. This serves as a positive sentiment\nthat could drive further upward movement in ERAA\u2019s share price.<\/p>\n
On Monday, 7 September 2026, ERAA\u2019s share price stood at Rp 575, down\n15 points or 2.54% daily. However, over the last month, the share price\nhas accumulated a total gain of 23.92%. During the same period, the\nJakarta Composite Index (IHSG) rose by only 3.28% to Rp 6,619.67.<\/p>\n
Erajaya\u2019s performance is projected to remain solid amidst various\nindustry challenges, driven by the trend of smartphone premiumisation\nand the strengthening of its business portfolio outside the handset\nsegment. Jonathan Guyadi, an analyst at Samuel Sekuritas Indonesia,\nestimates that ERAA\u2019s sales in the third quarter of 2026 could grow by\n4.8% year-on-year. Meanwhile, a more significant surge is projected in\nnet profit, which is expected to soar by up to 53% year-on-year,\nprimarily supported by the \u2018up-trading\u2019 trend, where consumers shift\ntowards smartphones with a higher average selling price (ASP).<\/p>\n
\u201cMost brands have launched new premium models to pass on the global\nincrease in chipset costs to consumers,\u201d Jonathan explained in a\nresearch report released on 17 July 2026.<\/p>\n
ERAA\u2019s operational performance is also reflected in the company\u2019s\nSame-Store Sales Growth (SSSG) for the first five months of 2026, which\nwas recorded at 7.2%. Domestic consumer demand for high-end flagship\ndevices, such as the iPhone 17 Pro Max line, remains very strong.<\/p>\n
Beyond the handset line, ERAA\u2019s growth is also supported by the\nexpansion of its active lifestyle business through its subsidiary, PT\nSinar Eka Selaras Tbk (ERAL). During the first five months of 2026, ERAL\nrecorded an impressive SSSG of 10.8%, supported by positive\ncontributions from various active lifestyle product lines.<\/p>\n
Opportunities Amid Global Volume Pressure<\/p>\n
Although global smartphone shipments in 2026 are projected to undergo\na correction of 13.9%\u2014based on IDC data\u2014the global blended ASP is\npredicted to increase by approximately US$100 to US$550. The high-end\nsegment, with prices above US$600, is expected to grow by 30%\nyear-on-year, contributing 8.3% of total shipments, while the segment\nbelow US$150 is expected to contract by 19%.<\/p>\n
ERAA is optimally positioned to capitalise on this condition due to\nits strong market position in premium products. To anticipate the risk\nof Rupiah exchange rate fluctuations, the company\u2019s management has\nprepared an early inventory buffer strategy and strengthened promotional\nsupport to keep sales volumes stable.<\/p>\n
Attractive Valuation and Share Buyback Corporate Action<\/p>\n
In the long term, ERAA continues to focus on expanding the revenue\ncontribution from its active and lifestyle business lines to reach a\nrange of 25\u201330% of total revenue to boost Return on Equity (ROE). Samuel\nSekuritas maintains a BUY recommendation for ERAA shares with a target\nprice of Rp 500 per share, reflecting a potential increase of\napproximately 35.9% from the research reference price of Rp 368. Within\nits sector, ERAA is considered to have an attractive valuation, trading\nat a 2026F P\/S of 0.1x and a projected 2026 P\/E of 3.5x, while offering\nan attractive projected dividend yield of 7.2%.<\/p>\n
As a demonstration of its commitment to shareholders, ERAA is also\nconducting a corporate action in the form of a share buyback with a\nmaximum fund allocation of Rp 500 billion. This action is scheduled to\ntake place over three months, from 4 September to 4 December 2026,\ntargeting up to 797.5 million shares, or the equivalent of 5% of the\ntotal paid-up capital.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/this-stock-has-risen-23-in-a-month-analysts-recommend-buying-amid-projected-performance-growth-1788889864", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }