Elevator Pitch
I assign a "Neutral" rating to Indonesia-listed consumer products company PT Unilever Indonesia Tbk (UNLRF) (UNLRY) [UNVR:IJ]. Unilever Indonesia currently trades at 39.1 times consensus forward FY2020 P/E, which represents a discount to its historical five-year and 10-year average forward P/E multiples of approximately 46.3 times and 40.5 times, respectively. I think Unilever Indonesia is still expensive, considering the slowdown in the company's revenue growth in the past few years. Furthermore, higher advertising & promotion expenses, and increased service fees pose downside risks to Unilever Indonesia's future profitability. A