Rebranding: Is Matahari Department Store (LPPF) Stock Worth Collecting?

JAKARTA, KOMPAS.com - The name change of PT Matahari Department Store Tbk (LPPF) to PT MDS Retailing Tbk is seen as a strategic step to broaden the company’s business direction amid increasingly dynamic retail industry competition.

The decision was approved at the Extraordinary General Meeting of Shareholders (EGMS) on 15 April 2026, with the support of the majority of shareholders.

Senior Market Chartist at Mirae Asset Sekuritas, Nafan Aji Gusta, views this name change not merely as rebranding, but as reflecting a transformation in the company’s identity and future business direction.

According to him, the use of the word “Retailing” signals the company’s strategy to deepen its specialisation in lifestyle products, including fashion with more detailed and targeted segmentation.

This step is also deemed important to counter pressures from the increasingly aggressive development of e-commerce.

From a performance perspective, Nafan sees the prospects of LPPF shares as still quite attractive, particularly in terms of dividend potential.

He added that seasonal momentum such as Idul Fitri, which falls in March, also supports performance in the first quarter of 2026, particularly from increased sales.

In addition, the company’s efficiency measures, including the rationalisation of less productive stores, are expected to maintain profit margins in the long term.

Nevertheless, Nafan warns of several challenges that need to be anticipated, particularly related to consumer purchasing power.

“If purchasing power weakens, it will certainly impact retail performance. Therefore, efficiency becomes key to ensuring the company remains sustainable going forward,” he said.

Overall, the retail sector continues to show resilience with real sales index growth in the range of 5.7 to 6.5 percent.

However, future challenges lie in how issuers can maintain momentum amid the normalisation of consumption post-Lebaran.