SRIL 2015

Company analysis

Sri Rejeki Isman is the biggest integrated garment industry in indonesia. The company produces garment, fabric, yarn and greige in its factory at Surakarta city and Semarang city. It is an export oriented corporation which exports its product to many countries across the world.

The company established in Solo in 1966, it was a traditional trading company which was selling its product in Klewer traditional market. Afterwards, the company established its factory which is operating 4 production lines; those were spinning, weaving, finishing and garment sections in 1992. The corporation produces four types of products, it consists of yarn, fabric, garment and greige. 

In 1994 the corporation was successful in getting contract of new client for production of military uniform for German army and NATO. Sri rejeki isman puts marketing representatives at many countries such as Australia, germany, UAE, Hongkong, Singapore and USA.

The corporation implements unique strategy in selling the product to customer, they used multi product, multi customer and multi countries. The corporation is able to produce 18 million pieces of garment product per year.

The company was surviving in monetary crisis in 1998 because it has created garment market at oversea.  At that time many garment corporations were bankrupt due to high foreign exchange rate and low demand in domestic market. Garment industry is cyclical sector, it is influenced by business cycle, and the performance of its industry tends to be dropped in downturn economic.

To keep its position as market leader the company has spent his fund to improve its facilities at factories, it used digital printing machine. It also cooperated with reputable entity to improve its fashion innovation. In 2015 the queen of Denmark and designer from Denmark visited the factory.  

In 2015 sales increased 12.1 % compared to sales in 2014. The double digit growth was contributed by acceleration of export segment. Export of Garment segment to over sea, mostly to USA and South America increased sharply in 2015. It increased 83.9 % than garment segment in 2014.

The accelerated of revenue was not in line with net profit margin that slightly decreased from 9 % in 2014 to 8.9 % in 2015. The fluctuation of raw material price was possibly as the reason. As the result of that ROE and ROA were slightly decreased.

BNBR 2015

Company analysis

Bakrie & brothers is established in 1951, its former name was NV Bakrie & Brothers. The company is engaged in various businesses such as construction, steel pipe manufacturing, construction product and etc.

Bakrie & Brothers is owned the bakrie family; one of tycoons in indonesia, Bakrie is also having other business such as media, energy and telecommunication. Aburizal Bakrie, the leader of Bakrie group is a politician of Golkar party.

In 2012 Bakrie and Brothers has divested its ownership in Bumi Plc, parent company of Bumi resources. As the result of that its total asset declined from IDR 15,658 billion in to IDR 11,878 billion in 2012, the decline was caused by the decline in its non-current asset from IDR 8268 billion in to IDR 4575 billion. The decline in non-current asset decreased net revenue significantly in 2012.

In  2015 Bakrie auto parts, the subsidiary of Bakrie & Brothers is qualified as Global auto parts supplier of Mitsubishi Fuso – Daimler. This advancement is probably able to increase net revenue in the future. It would export the auto part product Mitsubishi factories at oversea. Bakrie auto part is related with Krama Yuda Tiga Berlian and Mitsubishi Krama Yuda.

In 2015, the net revenue declined more than 26 % in comparison with net revenue in 2014. As the result of that the net profit dropped in significant number. The drop in net profit was not only occurred because of dropped revenue but it was also happened because of provision cost in 2015. The company posted provision amounted to IDR 968 billion. The net profit decreased from IDR 151 billion in 2014 in to IDR -1,7 trillion in 2015.

This provision was charged for its short term investment.  The provision for impairment loss decreased its short term investment from IDR 2.588 billion in 2014 to IDR 438 billion in 2015. If the provision is added back to its net profit, the loss was at around IDR 751 billion.

More than 81 percent of total revenue in 2015 was contributed by Infrastructure & manufacturing segment. Its segment comprises infrastructure, manufacturing and trading, services and investment. Its mining segment has been separated from its consolidated financial statement.

Bakrie Global Group

Bakrie Global group which is controlled by Aburizal Bakrie, it has been investing in Path, social media platform that was established in Silicon Valley. Their investment in 2014 was amounted to USD 25 millions. Dave morin, CEO of path, was visiting Jakarta to meet with his new investor. According to mortin, there are 4 million users of path in indonesia, they have significant influence in path.

Bakrie group argued that the investment will make Indonesians more connected and productive as their assertment in their twitter. The investment possibly used to create application in path. Another social media, facebook, has already had many applications in its platform.

Matahari Departemen store (LPPF) 2015

Retail industry

Modern retail in indonesia is low in its penetration compared to other countries in south east asia. Two indicators that show the low penetration are percentage of modern retail to total retail. It is only 17 % of total retail sales, in Philippines, Malaysia, Thailand and Singapore, percentage of modern retail to total retail sales are higher than indonesia. Then, the second indicator, the retail space in indonesia is smaller which is only 11,000 square meters per million people in 2015. In Philippines and Thailand, the retail spaces are 22,000 square meters per million people and 34,000 square meters per million people, respectively.

Conclusion, the modern retail industry in indonesia is possibly still under its potential demand.

Company analysis

In 2015, Matahari department store increased its stores from 131 stores in 2014 to 142 stores. Its total store area in 2015 became 931,700 square metres at 66 cities across indonesia. Matahari department store is affiliated with Matahari putra prima Tbk. Its ultimate shareholder is Multipolar that has 20.48 % shares. Another share holder is Asia Color Company Ltd with 2 % shares.

the expansion was done because indonesia has good potential for retail growth. Based on euromonitor, indonesia is one of five emerging markets with best middle income potential. Indonesia has fourth largest middle income segment

As a market leader in department store segment, the company attained 42.8 % of total market share in indonesia in 2015. At the same year it got 3,2 million active member of MCC (matahari club card). MCC is its customer loyalty program, the company endeavors to engage its customer in purpose to advance customer spending in purchasing stuffs at its store.

In 2015, in order to increase its revenue, the company signed agreement with Matahari Mall, its affiliated company, in selling product through internet. At further step, the company has purchased share option at 10 % of total share of Global Ecommerce Indonesia (GEI) which is a parent company of Matahari Mall. This strategy was in line with the recent trend, customer start to purchase product through internet.

The company was able to increase net revenue 13.6 % up at 2015 in comparison with net revenue in 2014. More than 64 % of total sales in 2015 was contributed by consignment segment. It argues that the exclusive brand was as the key success factor to get high growth in revenue. Besides, it was able to improve its profit margin from 17.91 % n 2014 to 19.7 % in 2015. Therefore, its ROA increased in 2015. 

AMTR 2015

Company Analysis

In 2015 the company has developed more than 11,000 units across indonesia and oversea. Among of the units are located at greater Jakarta, more than 37 % of total units.  For oversea operation, the company has started to build store at Singapore, Malaysia, Philippines and etc.

The unit consists of moko (mobil toko, alfamart, alfa midi, alfa express, Lawson and etc. Alfamart as the biggest part of its business, it separates its business in two type of product, it comprises food product and non food product. They allocated 70 % for food product and 30 % for non food product at each alfamart.

The company also runs another business in medical, beauty and healthcare and etc. based on its annual report the company used model of community store in operating its business.

In 2015, the company developed virtual store, the first virtual store in indonesia, it is called as alfa mind. It allows everyone to participate as either supplier or store owner. The company claimed that alfamind was able to advance income for the company in 2015.

The additional 1200 units store in 2015 and implementation of alfamind were able to increase revenue 16.3 % in comparison with revenue in 2014. The double digit growth is an indication of the right strategy from the company in 2015.

In 2015 the net profit decline as the increase of loan utilization. It increased interest expense at that year, as a result of that the net profit dropped. The company may possibly need more fund to finance its expansion, it paid prepaid rent for opening thousands of new store in 2015. Another expenditure was building platform of alfamind as the explanation at above.

SMBR 2015

The company was established in November 14, 1974 at Palembang, South Sumatera. PT Semen Baturaja is state cement company, government of indonesia has 76.24 % and the rest is owned public. The company is producing various cement including ordinary Portland cement and Portland composite cement. The company has done its IPO at march 14, 2013 at indonesia stock exchange.

The company runs three plants at panjang, Palembang and baturaja at south sumatera. It derived the raw material, clay and limestone from at around baturaja plant. So does its silica sand, it is derived from the third party at around baturaja plant.

For advancing its growth, the company has been starting the development of new factory to produce cement. It cooperates with Sinoma group to build Baturaja II plant. The new plant is scheduled accomplished at 2017. It is expected able to produce 1,850 thousand tons annually. And for the future, the company plans to establish baturaja III plant. It would start feasibility study of baturaja III plant.

In 2015 the company was able to advance its revenue 20.3 % higher compared to sales in 2014. The revenue was dominated from sales of sales of bagging cement to third party, its sales of bagging cement was 62.5 % of total sales in 2015. The remains was derived from revenue of bulk cement. It also improved its gross profit margin from 38.2 % in 2014 to 39.6 % in 2015.

As a state owned company, it cooperates with other state company such as Bukit Asam persero for coal purchase, Kereta Api Indonesia persero for railway service and etc.

PWON 2015

Company analysis

Pakuwon Jati as one of largest property company in indonesia, it continues in expanding its business in capturing demand from customer in its purpose to win the competition in property segment. Competitors in property industry are Agung Podomoro Land, Ciputra, Lippo Karawaci,Alam Sutera and etc.

In 2015 economic growth of indonesia was around 4.7 %, it was beneath the government target, 5 %. The slowdown of economic growth was influenced by low consumption and low price of commodities which was dominating export sector. Domestic consumption growth was improved in third quarter of 2015; it was at 4.53 % (yoy).

Central Bank also has loan to value regulation that was possibly not friendly to investor who invested in property as investment. Higher interest expense also tends to decrease demand of real estate.

 In October 2014 the company acquired PT Pakuwon Permai, its asset and revenue are consolidated to company’s financial statement. As the result of that recurring income of the company increased significantly as the additional asset that comprises Blok M Plaza, Supermal Pakuwon Indah, Royal Plaza and Somerset Berlian.  

In 2015 the company was also operating new hotel at its Gandaria city, Sheraton grand Jakarta. It strengthened its income from hospitality segment.

In 2015 its total sales increased more than 19 %, it comprised 46 % shopping center and office, 3.4 % hospitality and 49.9 % residential sales. The occupancy of its hotel in 2015 declined more than 3 %, despite it was able to increase its shopping center and office at round 29 % and its residential segment at more than 10 %.

ADRO 2015

Company analysis

Adaro is an integrated energy company that has integrated business in coal mining, mining services and logistics and power plant.

The company is implemented pit-to-power business model; it has subsidiaries which are located in pit-to-power value chain from mining location to its power plant location. Its subsidiaries run in related businesses such as barging, ship loading, dredging, port services and marketing.

The company branded its sub bituminous coal product with name of envirocoal, the coal which is claimed containing low sulphur, low ash and low nitrogen. So does its mining location, the company built mining which is friendly to the environment. The company implemented green energy concept in his energy business.

Based on its annual report the company focused in power plant business as the coal price at commodity market dropped due to lower demand of coal. However, based on wood Mackenzie predicted that the coal price will soar, the average global coal Newcastle price will reach at USD 53 per ton in 2016 and USD 54 per ton in 2017.

The power plant used new technology of coal power plant, it is called circulating fluidized bed. Its subsidiaries, Makmur Sejahtera Wisesa used this technology to generate 2 x 30 MW power plant.

On other hand, in 2015 the company has been developing its new power plant through its subsidiary, Bhimasena Power Indonesia. it is expected able to generate 2 x ,1000 MW. This company would use ultra supercritical boiler technology in its power plant.

May be, Adaro wants to produce more energy from coal as its main energy resources through its power plant. This is in line with government program that sets to build many power plants as energy supply is under its demand.

During period of 2011-2015, the net revenue of the company tends to decline gradually, its CAGR of net revenue in the period is -9.4 %. It is occurred due to negative trend in coal price at global commodity market at the same year. The sales volume during the same period is still slightly growing, its CAGR is at 1.1 %in during period of 2011-2015.

Sales volume in 2015 declined 6.8 % in comparison to its sales volume in 2014. Whereas, net revenue in 2015 declined 19 % compared to net revenue in 2014.

PBRX 2015

 Company Analysis

Pan Brothers was established in 1980, the company and its subsidiaries run its business as manufacture of woven garment, jacket and cut and sewn knit garments. It also runs in retail business through its subsidiaries.

The majority of the product was commonly exported to over sea such as United stated of America, European Community, Eastern Europe, Canada, Australia and etc. more than 80 % of total revenue was contributed from export revenue.

The world class branded product of apparel usually hands its production of the product over to third party as manufacturer. Besides, Pan brothers also established joint venture with the global player in garment industry.

In order to strengthen its position in garment industry, the company has joint venture with Mitsubishi Corporation in Boyolali, it is Eco Smart Garment Indonesia. This company is a garment manufacture for Mitsubishi buyer. Another its joint venture company is located in Hongkong, Cosmic Gear Ltd, an apparel buying agent and product development company.

Ocean Asia industry, one of its subsidiaries, is supplier for many world class brands such as H&M, Gap, Walt Disney, Target and etc.

On other hand, the company is also participating in retail business through Apparelindo Mitra Andalan which trades Zoe. Another retail company is Mitra Busana Sentosa which sells S n P, asylum and FTL.

The company has also been appointed as supplier for reputable world class brand such as Adidas, Nike, Hugo Boss,Yonex, Puma, Calvin Klein and etc.

In 2015, the company’s total revenue increased 23.6 % in comparison with total revenue in 2014. Based on its annual report, its majority of its revenue growth was contributed by highest sales growth in local segment. Its local revenue in 2015 increased 95 % compared to local revenue in 2014. Its local garment sales advanced more than 200 %.

High growth revenue in local market in 2015 was possibly occurred due to new manufacture operation, Pancaprima Ekabrothers and Ecosmart Garment indonesia purchased new fixed asset in 2015. Might be, it increased production capacity of production for local market. The company’s fixed asset also increased 62 % compared to its fixed asset in 2014.

In 2015 the company was able to improve its gross margin to 15.1 %. Net profit margin slightly decreased to 2.1 %, the higher interest expense declined its net profit margin. Howe ever, its asset turnover was improved to 94.5 %.

CPIN 2015

Company Analysis 

Charoen Pokphand was founded in 1972 at Jakarta as an agro business company, its main business operations is in feed poultry. The company also operates through its branches which are located at Sidoarjo, Medan, Tangerang, Cirebon, Balaraja, Serang, Lampung, Denpasar, Surabaya,Semarang Makassar and salatiga. 

The company is a foreign investment from Thailand, 55.53 % of total share is owned by PT Central Agromina which is affiliated with Jiaravanon family. 

 it is also producing other product, it comprises day old chicks and processed food and beverage. The company has totally 13 production facilities at across indonesia, with 8 poultry feed factories and 7 processed food factories. The company is also operating its network of breeding farms and hatcheries across the country. It has about 36 poultry farming across the country. For producing beverage product, the company operates 2 factories to produce the product. 

For processed food, its famous brands are fiesta, golden, and champ and okay, chicken processed food and its famous brand of beverage product is white tea. 

In 2015, the sales increased more than 3 % in comparison with total sales in 2014. The biggest portion of sales was contributed by poultry feed product; it was more than 73 % of total revenue in 2015. This segment declined 1.27% compared to same segment in 2014

The decline in poultry feed sales was occurred due to decrease in its average selling price. The company produces various poultry feed for chicken, it comprises broiler poultry feed, layer poultry feed and other feed.  

For day old chick, the company was able to increase its sales more than 19 % up in comparison with its sales in 2014. Charoen Pokphand is the largest day old chick producer in indonesia. 

The company has good liquidity in 2015, the current ratio was about 2 %. Its debt to asset has also been maintained at around 31-33 % in during 2014-2015. At 2015, as the gross profit margin improved compared to gross profit margin in 2014, the net profit margin increased in the same year. 

Key Person

Hadi Gunawan Tjoe, President commissioner, he graduated from language academy of Jakarta. He has been working for the company since 1973

Rusmin Ryadi, President Director, he holds economic degree from indonesia university, he has been serving the company since 1977. 

Peraphon Prayooravong, vice president director, he got his DVM from Harvard University, Cambridge, USA. He has been working at Charoen Pokphand since 1993. 

ICBP 2015

Company analysis 

ICBP is a part of Indofood sukses makmur Tbk, the company is producing consumer branded product which consists of noodles, Dairy, Snack food, food seasonings, nutrition and special food and beverages. In 2015 the company has launched more than 60 new products to the market.

ICBP is one of the biggest noodle producers in the world; it operates 16 factories across indonesia and one factory in Malaysia. It has 17 billion pack annual production capacity. At the same year, the company launched its new noodle product, Indomie my Noodlez and Sarimi gelas. Both of the products are created for children segment. Therefore the company increased 3 % of its production capacity in 2015.

For diary product, the company runs 6 factories across java island to produce various milk product through its subsidiary, Indolacto. It has more than 600 thousand tons annual production capacity. 

The company could increase its revenue 5,7% up in comparison with its revenue in 2014. 89 % of total sales in 2015 was contributed by noodles segment, 14.6 % was contributed by dairy segment and the remains of revenue was contributed by snack food, food seasonings, nutrition and special foods and beverage. 

The company was able to improve gross margin in 2015 compared to gross margin in 2014. Debt financing ratio (DFR) in 2015 decreased compared to DFR in 2014. The company tends to use internal source of fund to finance its capital expenditure and working capital. 

STEL.SI 2016

Company snapshot

Singapura Telecom was established in Singapore at 1879, its name was Singapore Telephone Board. At recent the company runs its operation in 25 countries. It has more than 600 million customers that comprise India, Singapore, Philippines, Thailand, Australia and 17 African countries.

In African and India, its joint venture is Bharti Air Tel Limited, this company has more than 340 million subscribers across india and African countries.  Singapore Telecom is possibly able to access data of its joint ventures in many countries including indonesia through Telkomsel. Because of that, there was issue about illegal taping of customers of Telkomsel in indonesia. 

The company is 51 % owned by Temasek Holding, a state owned company which owns various companies in Singapore and outside of Singapore.  

The company concerns in building digital segment which is focusing in three main points, it comprises digital marketing, OTT video and data analytics. They transformed from sms and voice – centric to data centric digital world.

In 2016, sales declined 1.5 % in comparison with sales in 2015. Based on its annual report 2016, the decline of sales was occurred due to revenue decrease in consumer segment. It slightly decreased 4.2 %. Meanwhile other segment, digital life and enterprise advanced compared to those two segments in 2015.

As the result of that asset turnover ratio decreased, so did return on equity. However, its net profit margin in 2016 improved in comparison with net profit margin in 2015. The weakened currency was probably as the cause of its decline. 

Therefore the company keeps in advancing the consumer segment, it plans to develop 5G technology with ericsson to develop a smart nation. It also put 800 hotspots in Singapore to allow its customer to access data service. Another service, residential fiber broadband service has been started since 2015. The capital expenditure was used to acquire new potential company and to develop IT infrastructure.

Singtel claimed as the first operator in south east asia which provides tri band LTE network using three spectrum. 

In asutaralia, optus may focus to develop video content as the main purpose, based on cisco’s visual networking index, video on demand will attain 77 % of mobile data traffic in Australia. Customer at adult age tends to use video service for communication and entertainment. 

In digital life segment, the company developed an intelligence digital marketing through amobee. This subsidiary is connected with various internet advertising such as social media, web, video and mobile. Amobee is able to optimize media strategies to increase brand awareness. 

Another digital life product is HOOQ, this is an OTT (over the top) video solution, the company cooperates with Sony Entertainment and Warner bross entertainment to provide this video service product. In order to advance innovation, the company also invested US 250 million to finance start-up companies. 

BRPT 2015

Barito Pacific was founded in 1979, its name was PT Bumi Raya Pura Mas Kalimantan. The company run various business that comprises petrochemical (Chandra asri petrochemical), property (griya idola), plantation ( royal indo mandiri),industrial timber plantation ( rimba equator permai),logging and timber manufacturing (tunggal agathis indah wood). 

Company snapshot

In 2015, almost all segment sales of the company were dropped, plantation segment was an exception. The demand of commodities at global market declined due to slower growth at global, as the result of that the price of commodities dropped. The booming of shale gas industry in USA may possibly push oil price to lower rate. 

The total sales in 2015 dropped 43 % in comparison with the total sales in 2014. Petrochemical was the suffered a biggest decline which was 44 % down. However, the decline in petrochemical was not only occurred due to slower economic growth, but it was also caused by the scheduled maintenance of naphtha cracker of petrochemical unit.  The company had been developing naphtha cracker facilities during 2015 and its project was accomplished in December. The company claimed its new naphtha cracker facilities will be able to increase its capacity 43% compared with previous facilities. Petrochemical supply was probably under its demand. 

The petrochemical segment had contribution more than 97 % of total income. On other hand, this segment was the key driver of company’s performance. 

Meanwhile, Plantation segment in 2015t grew more than 200 % in comparison with its position in 2014. It was increased by the operation of new palm oil processing mill through its subsidiary PT Tintin Boyok sawit in Sekadau, West Kalimantan. 

For the property segment, Griya Idola started to build Griya Idola Industrial Park through its subsidiary, Griya Tirta Asri. The 50 hectare industrial park is located at the western tip of Jakarta. 

In 2015 the company was able to improve its net profit from negative in to 0.4 % of total sales.  

MDKA 2015: SARATOGA’S VALUABLE INVESTMENT

 Company analysis

Merdeka copper gold tbk was established in 2012 with four subsidiaries that operates in mining project in Banyuwangi regency. Subsidiaries comprise Bumi Suksesindo, Damai Suksesindo, Cinta Bumi Suksesindo and Beta bumi suksesindo. Both Bumi suksesindo and Damai Suksesindo hold license for operation production of mining. The main business of the company is gold mining.

The location of its gold mining is located at banyuwangi regency, east java. The project was named as Tujuh bukit project.

Based on its annual report in 2015, Tujuh Bukit project is categorized as one of top world ranked undeveloped porphyry copper and gold deposits. The project comprises heap leach project and Porphyry project. The heap leach project is predicted to produce product in final quarter of 2016. It is also using open cut mining system with low stripping ratio 0,6: 1 (waste to ore ratio).

Based on its information at its web, the company claimed the heap leach project will be able to produce 97,500 oz gold per year with 9 years reserve mine life. This project is calculated capable to generate income more than USD 1 billion in 9 years with NPV more than USD 250 million

Another project, porphyry project is predicted containing 1,900 Mt @ 0.45 % cu, 0.45 g/t au and 90 g/t Mo. Its upper high grade zone is predicted containing 260 Mt with @0.8 % cu, 0.8 g/t Au and 160 g/t mo. porphyry project has more than 25 years mine life.

In 2015 the company was not producing any product yet, it has been operating its mining operation and at least it will start to produce the product at final quarter of 2016 as it mentioned at above.

Key Person

The company’s ownership is dominated by Saratoga group, Garibaldi Boy Thohir and provident group. Saratoga group is well known company in managing company that run in mining sector such as Adaro group. Mr. Edwin Soeryadjaja also hold position as vice president commissioner at Merdeka Copper Gold.

The board of commissioner is also fulfilled by mr. AM Hendropriyono, Mrs. Yenny Wahid (son of former president Gus Dur) and Mr. Boy Thohir who is also shareholder of Adaro Group and Surya Essa Perkasa.

Saratoga group is commanded by the heir of Saratoga Group, Mr. Michael Soeryadjaja who is also fulfilled position of Director at Merdeka Copper Gold. For CEO position, it has appointed Mr. Adi Ardiansyah as CEO of the company. 

CAP 2015

Company Snapshot

Slowdown in economic growth of indonesia in 2015 which stood 4.7 % decreased income of corporation in petrochemical industry segment. Chandra Asri Petrochemical as the main player in petrochemical industry experienced a decrease in its revenue. The sales volume fell due to decline in demand from the customer. The decrease of revenue was not only occurred by the dropped sales volume but it was also happening because the decline in its naphtha price in line with the decline in oil price at global market.

The net revenue in 2015 dropped -44 in comparison with net revenue in 2014. However, the company was able to improve their margin as its value chain in its business has been developed better in 2015. Net profit margin increased from 0.7 % in 2014 to 1.9 % in 2015. So did the gross margin, it increased from 7.3 % in 2014 to 15.1 % In 2015. The lower price of raw material might also advance the gross margin in 2015.

 The decline of sales was also caused by the scheduled turn around maintenance activities, the company shut down the naphtha cracker facilities for 85 days. As the result of that, the utility of the factory is not at the maximum point.

The company hired Toyo engineering to conduct cracker expansion project to produce naphtha cracker. Toyo engineering has been commencing the project since 2013. Another project was Synthetic rubber plant worth US 435 million in Cilegon, Banten. The plant will start to produce in 2018, it is a joint venture between the company and Financiere Du Groupe Michelin. 

BEST 2015

Bekasi Fajar Industrial estate (BEST) was established in 1989, the company is located at Bekasi city, west java. The company runs in industrial estate industry as its main business. It cooperated with Marubeni Corporation, foreign investment from Japan. A famous product from the company is Megalopolis Manunggal Industrial Development or MMID or MM2100.

The company also offers standard factory rental in its industrial estate area. The ultimate share holder of the company is the nin king family through its subsidiary, Argo manunggal land development with more than 48 % share. Other share holders are Hungkang Sutedja and Daiwa House industry co. ltd.

In 2015 the company allocated his fund in development of hotel and its facilities at the industrial estate area due to demand from the customer of MMID. The project is under construction in 2015 and it is expected that the project would accomplished in 2016. It is conducted by Best Sinar Nusantara and Jaya Obayashi.

In 2015 the sales of company decreased compared to sales in 2014. The decline in its sales was occurred in its sector, however the EBITDA seemed stable. The company faced negative trend in sales in the last three years. The sales of land decreased 22.1 % in 2015. The decrease in land sale was probably occurred due to the weakened economic growth, it was almost every industry declined. It was inversely happening with recurring income which comprised maintenance fee, rental fee, service charge and water service. It rose 27 % in comparison with sales in 2014.

The company is also offering golf field service, selling shop house in MM2100, selling Japanese food in Japanese restaurant and etc. The Land stock in 2015 was more than 9,662,692 Square meters which was valued more than 3.1 trillion rupiah. 

HMPS 2015

HM SAMPOERNA is market leader in cigarette industry at indonesia, this company was acquired by Phillip Morris in 2005. Michael Sampoerna as the fourth generation may probably take the decision to sell Sampoerna to Phillip Morris Indonesia due to high excise duty which tends to increase gradually at every year. He took the leadership of his family’s company since 2001.

Michael made the market surprised due its decision to sell Sampoerna to Phillip Morris Indonesia. After that Sampoerna turned its business in to others industry such as palm plantation, property, banking and entertainment at abroad.

In 2006 Sampoerna was successfully overtaking as the market leader in cigarette industry. Sampoerna has 35 % market share in indonesia, it comprises Sampoerna A (14.9 %), Dji Sam Soe (7.0%) , U mild ( 4.8%) and others. ( Source: Nielsen retail audit report )

In 2015 the company was able to sell more than 109.8 billion units. At the same year, the company was successfully generating fundraising through right issue amounted to IDR 20.77 trillion in its gross proceeds.

In Tobacco Company, the highest cost which has to concern is excise duty. It was more than 69.8 % of COGS 2015 was allocated to pay excise duty.

Net revenue of the company in 2015 increased more 10 % in comparison with net revenue in 2014. The advance of sales was contributed by tobacco segment, especially its machine-made kretek cigarette (SKM).its sales volume in 2015 was more than 70 billion units.

The company also owns subsidiary in property business, Taman Dayu. It is having agreement with Ciputra Surya for development of property. At oversea, the company has affiliation in Vietnam, Vinataba Phillip morris which is producing cigarette in Vietnam. 51 % vinataba is owned by Vietnam national tobacco corporation.