PT Erajaya Swasembada TbkFull report →1 / 14
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 $60.4MP/E FY27E 4.0×
$0.021
Share price
$4.6B
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
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 $4.6 billion sold in 2025; the rest is accessories, computers, operator products and a growing lifestyle, food and beverage line.
  • The take. Of every dollar of sales, 1.6 cents reached the parent's owners — $71.8 million on $4.6 billion.
Unit economics

Phones bring the sales; the lifestyle shelf brings the margin

Gross economics by segment, FY2025
SegmentGross marginShare of gross profit
Phones & tablets8.8%63%
Accessories & others23.1%33%
Computers & electronics6.9%2.5%
Operator products5.7%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

$4.6 billion of sales narrows to $71.8 million for owners

$501M
Gross profit10.9% of sales
$146M
Operating profit3.2% of sales
$71.8M
Profit to owners1.6% of sales
FY2025 income statement, top to bottom.
  • A narrow funnel. Gross profit of $501 million is absorbed by $230 million of selling costs and $167 million 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 $71.8 million reaches the parent's owners.
  • Structural, not seasonal. Two store-model costs — $45 million of lease depreciation and $34.3 million 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 $0.048 in 2021 at $770 million of market value; at $0.021 the company is worth $339 million, even as sales nearly doubled.
  • The operational turn. In the six months to June 2026 operating cash flow swung to a positive $102.5 million, after a heavy FY2025 inventory build had drained it.
  • Debt came down. That cash repaid $75.7 million of bank debt and redeemed $37.9 million of bonds as the FY2025 phone stock sold through.
The central question

Five years of profit turned into almost no free cash

$352M
Reported profit, FY21–25
$13M
Free cash flow, FY21–25
4.6%
Cash conversion
+$102.5M
H1 2026 operating cash
Where the reported earnings went.
  • Where the profit went. Between FY2021 and FY2025 Erajaya reported $352 million of profit but turned it into only $13 million of free cash flow — the growth was swallowed by a $193.2 million tax-refund block and a $686 million inventory whose FY2025 build was roughly 3.4 times the $71.8 million earned for owners.
  • What it means. That is 4.6 cents of free cash per dollar 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 $102.5 million 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; $193.2 million of refund claims sit with the tax office.
  • The stock. Inventory is $686 million — 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 $6.3 million even as $77.0 million 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
MeasureReading
Debt / equity0.73× (policy cap 2.0×)
Inventory turnover~50 days
FY2025 realised write-downs0.05% of cost of sales
Inventory insured$678M of $686M
H1 2026 bank debt repaid$75.7M
The bankruptcy risk sits low on the disclosed numbers.
  • Low gearing. Interest-bearing debt of $439 million against $602 million 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 $0.021 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 $770 million in 2021 now pays $339 million 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
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 $0.028 — 23% above the $0.021 price.
  • Below book. Owners' equity is $0.033 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.

Read the full report →

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.