SKLT

Digital currency revolution

Digital currency is being considered by people of whole the world for its new currency in transaction. Smartphone technology made digital currency as a choice in payment of their daily transaction. According to wall street journal the daily usage of digital currency of global in 2014 is USD 50 million a day. It is much smaller that the usage of Visa and master card which are amounting to USD 32 billion a day.

There are over than 2 billions of people at whole world which is called as unbanked people. And the developer of digital currency is set them as their target for digital currency product.

One of famous digital currency product is bit coin. Its system was established by satoshi nakamura three months after the financial crisis in US, in September 2008.  Mr satoshi took the momentum of crisis to launch bit coin.

Despite it could reduce cost of transaction, Bit coin still has flaws, it is vulnerable for money laundering and its price is also unstable.  Its currency iteration could change about more than 10 percent weekly. (source: wsj & internet)

Company analysis

The company exports its product to foreign countries such as US, Japan, Europe and etc. Its premium brand of product was called FINNA. But sales from domestic is still dominated its total income. The company has integrated business in food segment; its subsidiaries, Mitra Boga Sukses Abadi and Abadi Java food are operating in restaurant segment. For distribution, another subsidiary, Pangan Citra rasa Nusantara handle distributes the product across Indonesia. 

Surabaya is apparently a sea industry cluster, it is located near the sea and there are many industries either mass industries or home industries which are processing fish, shrimp, seaweed and etc both from fisheries segment and inland water.

Based on its financial statement revenue from local segment was more than 83 % of total revenue. The remained revenue was from oversea which was at 16 % of total revenue. Based on its products segment, the merchandise good segment was dominated which was 45.5% of total revenue of 2014. The second was cracker with 35.1 % of total revenue.

Based on euromonitor the food canned is expected having high growth in between 2013-2017. Its CAGR projection was more than 15 %. The company may start to increase its food canned or preserved food product to capture the demand in the market.

The sales growth of 2014 was more than 20 % compared to sales in 2013. The growth in 2014 was lower than sales growth in 2013 which was more than 40 %. It had occurred due to slowdown of economic growth in Indonesia. Among the people decreased their expenditure in 2014 due to higher cost of living and higher US dollar value to rupiah. Some company which depends on imported raw material has started to collapse and it has laid off employee.

According to the financial report of 2014, the largest share holder was Omnistar Inv H Ltd which has 26.78 % share. The second was PT Alamiah Sari with 26.16 % share.

Finally, the company is expected experiencing significant growth in next five years due its position as market leader of food of marine manufacturing industry in east java.