JAKARTA (Yosefardi) – Shares of retailer PT Matahari Department Store Tbk (LPPF) dropped 2.30% to Rp13,250 per share at 14.58 pm Jakarta time with only 2.03 million shares exchanged hands.

The stock gained in morning trade, reaching Rp14,700, but turned to loss in afternoon trade. LPPF however has gained 20.2% year to date.

At current price, LPPF, which operates 125 outlets, has market capitalization of Rp38.66 trillion. Last year, LPPF booked net profit of Rp1.16 trillion or about Rp9.28 billion per outlet.

LPPF generated substantially high net profit margin (NPM) of 17.3% last year, way above other retailers, including ACE Hardware and Ramayana (RALS) or Mitra Adi Perkasa (MAPI).

Ramayana, which operates 119 outlets, is now valued not even a quarter of Matahari Dept Stores even though its net profit margin (NPM) was 7.2%.

Matahari Dept Stores reported Rp2.67 trillion of commissions from consignment sales or about 30.74% from total consignment sales. The company might have stronger bargaining position in the purchase of goods.