Strong Fundamentals: Is AZKO Ready to Distribute Dividends Again?

Jakarta, CNBC Indonesia - PT Aspirasi Hidup Indonesia Tbk (ACES), which oversees the AZKO retail network, has successfully commenced 2026 with impressive performance growth. This achievement aligns with improving public purchasing power and the company’s consistent, disciplined execution of operational strategies.

As of the first quarter of 2026, AHI recorded net sales of Rp 2.35 trillion, representing a 10.1% increase. This result drove current year profit to grow by 18.3% to Rp 163.59 billion. This performance was bolstered by a stronger Ramadan and Eid al-Fitr momentum compared to the previous year, reflected in improved transaction quality.

Furthermore, AHI recorded a Same Store Sales Growth (SSSG) of 4.3% in Q1 2026, with the primary contributions coming from Jakarta and Java. Meanwhile, in areas outside Java, AHI achieved solid sales growth through regional expansion.

Given these strong fundamentals, it is unsurprising that the AZKO modern retail network consistently distributes dividends to shareholders annually. Looking ahead, AZKO is also anticipated to be ready to distribute dividends to equity investors.

Abida Massi Armand, a Fundamental Analyst at BRI Danareksa Sekuritas, noted that the opportunity for AHI to continue distributing cash dividends remains high, as the company’s cash position remains strong and is supported by a healthy balance sheet.

“We estimate the DPS for FY26F to be approximately Rp 24 per share, with a dividend yield of around 6%,” he told CNBC Indonesia on Tuesday (19/5/2026).

Aside from dividend distributions, he believes the issuer, under the ticker ACES, needs to strengthen its value retail strategy this year. This includes expanding the AZKO and NEKA brands, increasing private labels, maintaining cost efficiency, and broadening daily necessity categories such as FMCG. AHI also needs to focus on solution-based retail so that customers visit AZKO or NEKA stores not just to purchase goods, but to seek home living solutions.

Abida also stated that AHI still has the potential to achieve growth in 2026 despite challenges such as the risk of weakening purchasing power and Rupiah exchange rate volatility. He projects AHI’s revenue will rise 6.2% year-on-year (YoY) to Rp 9.3 trillion, with net profit increasing 15.5% YoY to Rp 823 billion in 2026, supported by store expansion and operational efficiency.

Ultimately, Abida maintains a ‘buy’ recommendation for ACES stock with a price target of Rp 550 per share. He noted that the retail network’s stock possesses attractive features, including low valuation, high dividend yield, a solid financial balance sheet, and a household retail business positioning that is relatively defensive compared to other consumer sectors.

Notably, over the last five years, AHI has never failed to distribute dividends to investors, indicating the company’s ability to maintain stable financial cash flows. Records show AHI distributed dividends of Rp 32.15 per share for the 2020 fiscal year, followed by Rp 20.59 per share for 2021, Rp 31.06 per share for 2022, Rp 33.5 per share for 2023, and Rp 33.87 per share for 2024.