Sharia-Compliant Issuers Grow by 82 Percent, Observer: Pharmaceutical Stock Prospects Are Very Attractive

JAKARTA, November 17, 2023 – The growth of Sharia-compliant listed companies has increased by 82 percent from 2013 to June 2023. According to data from the Indonesia Stock Exchange, the number of Sharia investors has risen by five percent to 123,359, compared to the previous figure of only 5,457 individuals. Moreover, the number of Sharia stocks remains more dominant than non-Sharia stocks and continues to increase year after year.

According to the Head of Research at FAC Sekuritas, Wisnu Prambudi Wibowo, retail investors currently consider Sharia stocks as one of the options for investment due to the increasing number of Sharia-listed companies on the Indonesia Stock Exchange.

"Both conventional and Sharia stocks are progressing side by side and continue to grow. The total number of capital market investors in June has reached 11 million, consisting of stock, bond, and mutual fund investors. Speaking of products, Sharia stocks have consistently seen an increase over the years," he said when contacted on Friday (17/11).

According to Wisnu, Sharia stocks in the pharmaceutical sector are quite attractive for long-term investment, considering that the health budget in the 2024 State Budget is 5.6 percent, amounting to 186.4 trillion, an increase of 13.9 trillion from the previous year.

"This indicates a positive development. It means that the government is paying close attention to improving healthcare services and facilities in Indonesia. The government also emphasizes the growth of the domestic industry and reducing dependence on imports, especially in terms of raw materials."

Looking at the long term, he added that the shares of PT Phapros Tbk (PEHA) are one of the Sharia-compliant stocks that have added value, particularly in terms of historical consistency in the company's management in distributing dividends.

"This is a unique selling point for Phapros. If we look at the aspect of how often a company distributes dividends, PEHA has been consistent. (Moreover), changes in sales have not had a significant impact."

Wisnu also cited other health sector companies that experienced a significant decrease in sales of health equipment after the pandemic, unlike PEHA.

"This did not happen to PEHA, so from this perspective, the stock is still very attractive."

PT Phapros Tbk, which is part of the new state-owned pharmaceutical holding, recently released its financial report for the third quarter as a form of transparency in the company's management. The management ensures that until the end of 2023, the company will remain positively active, with Phapros committed to growing in the fourth quarter of 2023 and beyond by implementing various strategies to anticipate the still unstable pharmaceutical market conditions. This includes portfolio product restructuring, maintaining stock levels of its flagship product Antimo for the year-end holiday season, and other prepared products to stimulate the company's growth.

"We are optimistic that Phapros, as part of Sharia-compliant listed companies, can be the primary choice for investors looking to invest in long-term portfolios. In this last quarter, we will continue to provide the best sales and financial performance that investors can enjoy during the next dividend distribution," said Acting CEO of PT Phapros Tbk, David Sidjabat.