Kalbe Farma Launches Rp 250 Billion Share Buyback to Bolster Investor Confidence
Main Takeaways
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JAKARTA, Investortrust.id — Kalbe Farma, KLBF, launches a share buyback of Rp 250 billion, equal to about $15.3 million, starting Thursday, Sep 4, 2025, in Jakarta, to reinforce investor confidence and enhance long-term capital flexibility.
PT Kalbe Farma Tbk (KLBF) said it planned to fund the repurchase using internal cash and to execute transactions on the Indonesia Stock Exchange through securities brokers, in line with market regulations. The program is scheduled to run until Wednesday, Dec 3, 2025, unless the company ends it earlier.
In a disclosure signed by Corporate Secretary Maria Teresa Fabiola, management noted that using internal funds could reduce interest income by roughly Rp 2.5 billion (about $0.15 million) after the program ends, an impact the company deemed immaterial to performance. The company also indicated that treasury shares could be transferred later at an optimal value to support shareholder returns.
Management added that, if the buyback is fully realized, pro forma earnings per share would rise to Rp 70.43 per share, reflecting the mechanical uplift from a smaller free float. The company emphasized that the buyback aims to underscore its fundamental value amid volatile market conditions.
Broker view and guidance
Samuel Sekuritas maintained a “Buy” call on KLBF with a target price of Rp 1,600, even as it cut 2025–2027 forecasts to reflect softer purchasing power and lowered management guidance. The broker revised its 2025 net profit forecast to Rp 3.50 trillion from Rp 3.87 trillion and revenue to Rp 34.40 trillion from Rp 35.80 trillion, while highlighting Kalbe’s business-mix reshaping for long-term profitability and the defensive nature of its product portfolio.
The buyback comes as the rupiah trades in the 16,300–16,500 per dollar area this week, a backdrop that can sway imported input costs and equity risk sentiment. Bank Indonesia has reiterated efforts to stabilize the currency around 16,300 per dollar.
From a capital allocation standpoint, using internal cash preserves financial flexibility and avoids earnings dilution, while any EPS lift depends on execution size and price paid relative to intrinsic value. The company signaled the repurchase would follow prevailing regulations and reasonable pricing parameters under OJK rules.
Source: InvestingPro. Figures current on the publication time.
Valuation & Health Snapshot
Kalbe Farma Tbk (KLBF) closes at Rp 1,185, up 2.16% on the day, trading near the lower end of its 52-week range of Rp 985–1,790. InvestingPro models point to an average fair value around Rp 1,721 with low uncertainty, implying roughly 45% upside, and a spread between Rp 1,484 and Rp 2,198. Street targets from 15 analysts average Rp 1,680, with estimates spanning Rp 1,490–2,200.
On fundamentals, cash-flow and profitability score stronger, while growth and relative value sit at 3/5; price momentum lags at 1/5, consistent with the note that the stock has taken a big hit over the last week.
The dashboard also flags management as aggressively buying back shares, the RSI in oversold territory, and the stock trading at a low earnings multiple. The latest company report was on Jul 31, 2025, and the next earnings date is Oct 29, 2025.
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