ERAAIDXThe short version
PT Erajaya Swasembada Tbk
PT Erajaya Swasembada is Indonesia's largest importer, distributor and retailer of mobile devices, selling phones through 2,333 owned outlets and about 54,000 resellers, and now expanding into sportswear, groceries and food.
From Rp360 in early April the shares ran to Rp416 by late April, slid to Rp322 in June, and recovered to Rp386 by late July — still around a fifth of their 2021 high.
Net cash Rp1.1TP/E FY27E 4.3×
Rp386
Share price
Rp76.6tn
FY2025 net sales
2,333
Own retail outlets
78%
Sales from phones
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IThe business
The business
Indonesia's biggest phone seller, now adding sneakers and bubble tea
FY2025 revenue by segment
Phones & tabletsRp tn60.178%
Accessories & othersRp tn11.916%
Computers & electronicsRp tn3.14%
Operator productsRp tn1.62%
External segment sales, FY2025.
- The core. Erajaya imports phones from Apple, Samsung and Xiaomi and sells them through 2,333 owned outlets and about 54,000 registered resellers across Indonesia, Malaysia and Singapore.
- The mix. Phones and tablets are 78% of the Rp76.6 trillion sold in 2025; the rest is accessories, computers, operator products and a growing lifestyle, food and beverage line.
- The take. Of every rupiah of sales, 1.6 cents reached the parent's owners — Rp1.20 trillion on Rp76.6 trillion.
Unit economics
Phones bring the sales; the lifestyle shelf brings the margin
Gross economics by segment, FY2025
| Segment | Gross margin | Share of gross profit |
|---|---|---|
| Phones & tablets | 8.8% | 63% |
| Accessories & others | 23.1% | 33% |
| Computers & electronics | 6.9% | 2.5% |
| Operator products | 5.7% | 1.1% |
Segment gross margin and share of group gross profit.
- Thin core. The phone line that drives revenue earns an 8.8% gross margin, down from 9.5% a year earlier — volume, not pricing power.
- Richer edge. Accessories and the lifestyle, food and beverage businesses are 15.6% of sales at a 23.1% margin, and supplied 33% of group gross profit, up from 27.8% in 2024.
- Where growth adds most. Gross profit from that line grew 36% in 2025 while phone gross profit grew 6% — the arithmetic behind the diversification push.
From sales to owners
Rp76.6 trillion of sales narrows to Rp1.2 trillion for owners
Rp8.35tn
Gross profit10.9% of sales
Rp2.43tn
Operating profit3.2% of sales
Rp1.20tn
Profit to owners1.6% of sales
FY2025 income statement, top to bottom.
- A narrow funnel. Gross profit of Rp8.35 trillion is absorbed by Rp3.83 trillion of selling costs and Rp2.79 trillion of admin, leaving 3.2% of sales as operating profit.
- Finance and minorities. Interest takes about a quarter of operating profit, and minority partners now take 8.9% of group profit, before Rp1.20 trillion reaches the parent's owners.
- Structural, not seasonal. Two store-model costs — Rp750 billion of lease depreciation and Rp572 billion of instalment-card fees — alone consume 15.8% of gross profit.
IIThe record
The five-year record
Sales grew 76% in five years — driven by volume, not margin
Net sales, FY2021–FY2025
Rising unit volumes and average selling prices, not wider margins.
- Real demand. Indonesian smartphone shipments passed 40 million units in 2025 and 5G's device share climbed toward 35%, lifting average selling prices.
- Volume, not price. Rising prices lift revenue almost mechanically; they do not widen the margin on each phone, so gross profit tracks units sold.
- The gap. Sales rose 76% between 2021 and 2025; profit to owners rose 18%.
Margins
The gross margin never moved; the owner's share of sales fell by a third
Margins on net sales, FY2021–FY2025
Gross margin held in a 10.7–11.1% band for five years.
- Flat at the top. Blended gross margin has sat between 10.7% and 11.1% since 2021, so the group has little pricing power to show for its scale.
- Squeezed below. The operating margin fell from 3.8% to 3.2% and the owner net margin from 2.3% to 1.6%, as the store estate and interest bill grew faster than gross profit.
- Quality flag. Almost all of 2025's operating-profit growth came from foreign-exchange gains and an unexplained residual, not from the trading business itself.
Three-year financials
Profit compounded 20% a year — but cash lagged well behind
FY2021 → FY2025as reported · Rp
RevenueRp76.6T+17%
Operating margin3.2%−0.1pp
Net incomeRp1.2T+16%
EPSRp75.68+16%
Free cash flow−Rp570.8B−Rp2.0T
Open the full statements →Revenue, margins, earnings and free cash flow, built from the filed statements.
- The record. Sales compounded 12.9% and profit to owners 20.3% a year over FY2023–FY2025, carrying earnings per share up more than 40%.
- The catch. Trading operating profit — before other income — was flat between 2024 and 2025; 94% of the reported gain came from currency gains and an undisclosed residual.
- Cash vs profit. Over three years reported profit and operating cash were close in total, but after capital spending and leases the group consumed cash rather than generated it.
IIIThe story now
What's happening now
A fallen favourite, with a first-half cash swing behind the recent bounce
Daily close, April–July 2026.
- From favourite to laggard. The shares fetched Rp690 in 2021 at Rp11.0 trillion of market value; at Rp386 the company is worth Rp6.2 trillion, even as sales nearly doubled.
- The operational turn. In the six months to June 2026 operating cash flow swung to a positive Rp1,864 billion, after a heavy FY2025 inventory build had drained it.
- Debt came down. That cash repaid Rp1,375 billion of bank debt and redeemed Rp689 billion of bonds as the FY2025 phone stock sold through.
The central question
Five years of profit turned into almost no free cash
Rp5.48tn
Reported profit, FY21–25
Rp0.25tn
Free cash flow, FY21–25
4.6%
Cash conversion
+Rp1,864bn
H1 2026 operating cash
Where the reported earnings went.
- Where the profit went. Between FY2021 and FY2025 Erajaya reported Rp5.48 trillion of profit but turned it into only Rp0.25 trillion of free cash flow — the growth was swallowed by a Rp3.51 trillion tax-refund block and a Rp12.48 trillion inventory whose FY2025 build was roughly 3.4 times the Rp1.20 trillion earned for owners.
- What it means. That is 4.6 cents of free cash per rupiah of reported profit; at 0.65 times book, the discount is earned only if the tax-refund block and the inventory release cash rather than scale further with sales.
- The other side. The most recent half is the counter: operating cash of Rp1,864 billion covered capex and leases with room to spare and repaid debt — two such years running would settle the question the other way.
Where the capital sits
The cash is tied up in a tax-refund pile and a wall of phones
Largest balance-sheet items, 30 Jun 2026
The two capital sinks dwarf the cash balance.
- The state's IOU. Indonesia's Article 22 tax is levied on import value, not profit, so the parent prepaid 10.9 times what it owed in 2025; Rp3.51 trillion of refund claims sit with the tax office.
- The stock. Inventory is Rp12.48 trillion — about 40% of the balance sheet and 69% phones — funded largely on short-term bank lines.
- Slow to release. In H1 2026 the refund block fell just Rp114 billion even as Rp1,398 billion was collected, so it keeps refilling as sales grow.
Downside floor
The funding is short and secured, but every covenant is met with room
Balance-sheet resilience
| Measure | Reading |
|---|---|
| Debt / equity | 0.73× (policy cap 2.0×) |
| Inventory turnover | ~50 days |
| FY2025 realised write-downs | 0.05% of cost of sales |
| Inventory insured | Rp12.3tn of Rp12.5tn |
| H1 2026 bank debt repaid | Rp1.38tn |
The bankruptcy risk sits low on the disclosed numbers.
- Low gearing. Interest-bearing debt of Rp7.98 trillion against Rp10.94 trillion of equity is 0.73 times, well inside the group's 2.0-times ceiling.
- Fresh stock. Inventory turns in about 50 days and realised write-downs have run near a rounding error, though the obsolescence reserve was thinned as the book swung toward phones.
- The watch item. Cover was only recently lifted close to carrying value, and the provision charge is now rising as slower-moving lifestyle stock takes a larger share.
IVThe price
What the market pays
Sales doubled over five years; the market value did not move
Net sales vs year-end market value
Year-end market capitalisation against net sales.
- Cheap on the face of it. At Rp386 the shares trade at 4.3 times trailing earnings and 0.65 times book value — a valuation that prices in the cash-conversion gap.
- A fallen favourite. The market that paid Rp11.0 trillion in 2021 now pays Rp6.2 trillion for a business selling 76% more.
- Founder-controlled. The Eralink family holding lifted its stake to 56.6% of shares outstanding, funded mostly by company buybacks — insiders adding, not selling.
Scenario and street
Cheaply priced against book and targets, if the cash finally converts
Per-share reference points
Price today
Rp386
Mean analyst target
Rp504
Book value per share
Rp594
Today's price against consensus target and book value.
- Room to the target. Sell-side coverage is uniformly positive, with a mean twelve-month target of Rp504 — 23% above the Rp386 price.
- Below book. Owners' equity is Rp594 per share, so the market pays two-thirds of book for a business still growing sales at a double-digit rate.
- What decides it. Consensus has earnings compounding into 2028 with a rising dividend; the case turns on whether the tax-refund block and inventory start releasing cash.
What to watch
A cheap, founder-run, growing retailer — or a value trap where the profit never becomes cash.
- 01Operating cash after leases covering capex and the dividend for two consecutive years.
- 02The Rp3.51 trillion tax-refund block shrinking as sales rise, rather than refilling.
- 03Trading operating profit growing at least in line with sales, not propped up by currency gains.
- 04The FY2026 obsolescence charge landing near its first-half run-rate as phone stock builds into slower shipments.
This distils a study built chapter by chapter, from the business and balance sheet to what the market pays.
Compiled from the full report · 2026-07-30 · For information, not investment advice.