MAYORA INDAH TBK - MYOR

Preliminary

Marhaenism or capitalism

That question is very difficult to explain, our recent government is formed by opposite group as the winner parties in election of 2014 which is adopted soekarno’s contemplation in national philosophy for economic, politic, culture and etc.  At recent day central bank is still self control in making policy for monetary sector. Central bank has independent right in setting monetary policy, controlling money supply, regulating banking system and issuing currency. It inclined to use capitalism concept of economy.  

Capitalism is an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth. (http://dictionary.reference.com/).

Meanwhile, marhaenism system encourage individual or government to be more independent, free from exploitation by others.  Firstly, capital is used to produce good and service for own then secondly sell the surplus of the product to the market. In conclusion individual is encouraged to be able to be sel sufficient. Farmer and worker take the position not as production factor; the ideal condition is they produce goods and services that related with their needs to avoid exploitation. In addition, the system does not produce goods and services which are not needed yet by the market so it will be efficient.   (Source: Wikipedia)

According to the projection of Mckinsey & company, indonesian’s high-net-worth individual parked fund amounting to approximately 200 billion dollar in 2016. The fund will be invested in fixed income, stocks and bank deposit.

The ministry of finance said that they consider to give tax incentive for high net worth individual of indonesia for bringing back their money to indonesia. It is likely tax amnesty program in italy which is able to bring money amounted to about USD 100 billion.

If the money is invested in government bond and reducing oversea’s ownership, it will strengthen rupiah currency in money market.    

Will they implement marhaenism ?

That will be difficult to implement because they won under 50 % votes in the last election, on other hand the parliament is controled by the opposite groups.

Company analysis

Mayora Indah Tbk was owned by Unita Branindo which owns 32.93 % of total share. The company runs its business in food and beverage product with range of market for Asia region and local.    

The revenue of 2013 has increased 14 % up than revenue of 2012. The key driver of revenue growth is its food processing product; it was 55 % of total revenue in 2013. The rest was coffee powder, coffee instant and cocoa beans.

The revenue growth in 2013 was driven by the industry of food and beverage industry which was continue to grow as the demand of food and beverage product is stable in its growth. The 5 years average growth of the industry was at 5.27 % (source: Reuters).

The biggest part of total sales in 2013 was contributed by sales from domestic, it was 63% of total revenue and Asia was at second with 33 %.

On other hand, the gross margin in 2013 was at 27.13 %, it was higher than gross margin in 2012 which was about 24 %.

In 2013, trade receivable of related party, PT inbisco Niagatama semesta is bigger than trade receivable of third party. The trade receivable of related party was amounting to more than 2 trillion rupiahs. Trade receivable with third party was 746 billion in the same year. As the result of this, the company could control cost of sales more flexible. 

Consolidated subsidiaries comprise Sinar Pangan Barat, Sinar Pangan Timur, Mayora Nederland and Torabika Eka Semesta.

In 2013 the cash cycle of the company was improved than the cash cycle in 2012. Cash cycle in 2013 was at 38 days and cash cycle in 2012 was at 47 days. The company could generate cash faster in 2013 compared to 2012.