GGRM achieved net profits of IDR2.96 trillion (+34% y-y, +54% q-q) in 3Q19. Net profits in 9M19 cumulatively amounted to IDR7.2 trillion (+26% y-y). Based on our estimate, 3Q19’s net profits were higher than our previous estimate of Rp1.3 trillion. Previously, we estimated that in FY19E, GGRM would have achieved net profits of IDR7.8 trillion or 92% of the current achievement. However, the current circumstances are favorable for tobacco companies to increase profits before the excise tax to take effects on January 1, 2020; thus, we revise higher the estimated net profit in FY19 to Rp9.4 trillion.
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