INDOFOOD CBP Tbk

Company analysis

Manufacture of food and beverage industry is interesting sector due to its steady growth over the last five years. In 2010 until 2014 the CAGR of the sector was 8.7 % (at constant price). The demand of the product may possibly at above the supply. Among of other sectors, manufacture of food product and beverages had the highest growth at that period. (source: BPS )

In 2014 the company attained double digit growth of revenue that stood at 19 % higher than sales in 2013. The impressing segment in 2014 was beverage segment that was growing more than 700 % compared to same segment in 2013. The decline was incurred in food seasoning segment in 2014 compared to the same segment in 2013. It decreased more than 26 %. The competition with another major player in food seasoning market such as unilever indonesia may be as the reason of the downfall. The increase of beverage segment was incurred due to acquisition of premium brand such as Asahi Brand and Pepsi Brand. The biggest part of revenue was contributed by noodle segment that was 55 % of total revenue.

As the result of that the company succeeded in increase its gross profit margin and reduced its cash cycle shorter.

Instan noodle was still dominated the company’s revenue in 2014. The demand of this product is high in indonesia. The company competes with wings corp in this noodle’s market at domestic. Besides it is selling to product for domestic, the company also exports the product to abroad. In 2014 Saudi Arabia was the biggest contributor in export segment.  

The company has collaborated with global company in producing food seasoning product, it developed joint venture with Nestle Indonesia to build Nestle indonesia Cita Rasa Indonesia. For beverage product the company collaborated with Asahi Corporation from Japan to establish Asahi Indofood Beverage Makmur.

The majority of revenue and receivable were with related parties, the company uses its subsidiary, Indomarco Adi Pratama, as main its main distributor. It was more than 71 % of sales was with related party.

Smart E-money Inc

Indofood as the part of salim group has affiliated company in Philippine which has launched mobile wallet. It collaborated with Citibank Philipine and Visa International to established Charge to phone (C2P). This product is a combination between card services includes visa credit card and provider as mobile wallet for transaction. (http://www.philstar.com/banking/2014/12/16/1403055/smart-citi-visa-team-mobile-digital-payments).

In the future it is possible that the company will use the product for transaction in its business segment such as indomarco adi pratama. 

EXCL : XL AXIATA 2014

The highest growth is information and communication sector

In 2014 the sales of smart phone at Indonesia was at 24.8 million units or it increased 62.1 % compared to sales in 2013. The growth in smartphone’s unit was in step with growth in related sector includes information and communication sector that increased more than 10 %. It was the sector with the highest growth in 2014.

In 2014 the digital industry had already advanced significantly as central bank issued its regulation about e-money.the regulation comprised of PBI no.16/8/PBI/2014 and SEBI no 16-11-DKSP. Many Banks collaborated with Telecommunication Company in period of 2013-2014 such as Telkom Indonesia launched e-money product in form of synergy of e-money and banking such as Mandiri e-cash, Rekening Ponsel and T-bank. Smartphone could be used as a wallet at recent.

Company Analysis

XL Axiata is one of strategic investment of Axiata group in indonesia. The parent company is axiata investment Sdn Berhad with 66.48 % of total share. Axiata group is a telecommunication company from Malaysia.

Hasnul Suhaimi, MBA graduate from Hawaii University has been as its CEO during several years. Mr. Hasnul got its degree in electrical engineering at Institute Technology of Bandung. In 2013 XL Axiata acquired axis and it claimed as the second biggest operator in Indonesia after Telkom. 

In 2014 the sales increased more than 11 % compared to revenue in 2013. The biggest contribution of the growth was given by cellular revenue. The data and VAS income of cellular revenue in 2014 grew 42.6 % compared to the same income in 2013. The subscriber may allocate more funds for browsing, operating social media and downloading video and audio. The trend may have been changing in XL’s income. It is possible that the high growth in VAS and data income were affected by HOTROD 3G+ technology that make internet connection faster.

Although the biggest revenue in cellular still came from voice segment, the VAS and data is expected growing faster in the next year. The gap between them was smaller.

In 2014 the company experienced loss as the infrastructure expense increased more than 36 % compared to infrastructure expense in 2013. The hike of infrastructure expense was contributed by the increase of license fee that was 64 % up. Its subsidiary, axis telecom indonesia, had purchased modern technology for operating mobile telecommunication service, it comprises GSM 900/DCS 1800 and IMT – 2000/ 3G.

More than 85 % of total asset of the company was Network equipment, the value of network equipment in 2014 stood at 54,581 billion rupiah.

In 2014 the XL Axiata had the third biggest revenue in Telecommunication Company. The second was indosat and the first was Telkomsel. However, XL Axiata had the highest growth of revenue. 

Bank MNC 2014

Change in BOD and BOC

In 2014 the company has appointed Benny Purnomo as president director of the company, he replaced Sindbad Hardjodipuro (formerly writer’s area manager) who fulfilled new position as Director of Business banking. In 2014 MNC Capital Indonesia Tbk acquired ICB Bumiputera and it changed its name become MNC Bank. In addition, the company appointed Bambang Ratmanto as the president commissioner.

Change in shareholder

Based on annual report in 2014 MNC Capital Indonesia Tbk acquired only 39.68 % total share of the company. The former controller’s share holder, ICB Financial group holding who owned 69.90 % total share sold all their stock in the company.

The biggest part of its loan in rupiah currency was allocated in business service sector which was amounted to IDR 1,752 billion. It was increased 25.5 % up compared to the same sector in 2013. Meanwhile largest loan in foreign currencies was put in manufacturing sector which was amounting to IDR 624,546 million. For overall, the company is concerning in business service sector.

The gross loan growth in 2014 was 13.4 % up compared to the gross loan in 2013. Although the economic growth declined in 2014, the company was able to increase its loan portfolio. Business service was the biggest contributor in the loan growth of 2014. The largest non performing loan was from transportation, communication and warehouse sectors.

In spite of the company loss in 2014, it was able to decrease loss from IDR -81,740 million in 2013 to IDR -54,550 million 2014. As the result of that the company could improve its return on equity.

Acquisition for advancing digital banking and MNC tencent (we chat)?

The MNC group may possibly buy MNC Bank in order to create synergy with its others business segment such as MNC Tencent which operates We Chat. The feature of we chat may possibly be added such tool for doing transaction. The similar product has been available in Indonesia such as Mandiri e-cash and rekening ponsel. Those product use cell phone number as its bank accounts for transaction. I consider the product will be more sophisticated.

MNC Bank has opened several branchless banking rooms in Jakarta to create its digital banking in Indonesia.

Source: Financial statement 2014 and news paper 

Bank Mega 2014

SYNERGY WITH ALLIANCE

Bank Mega is a part of the CT Corporation that is owned by Chairul Tanjung and his family, an indonesia tycoon, as shown in the picture at below this article. Mega corpora as the biggest share holder owns more than 51 % of company’s total share. Bank mega formerly referred to Karman Bank and Mega Bank.

In 2014 there have a several replacements of directors. As shown in the table, the replacement may possibly happen in order to implement new strategy of the company. Hereafter, the company more concern in conducting synergy between its alliance such as transformation television, Metro Department Store and Carrefour, mostly its credit card’s facilities.

Board of Director
	2013		2014
	Kostaman Thayib		Kostaman Thayib
	Madi D Lazuardi		Madi D Lazuardi
	Max Kembuan		Max Kembuan
	Dony Oskaria	Resigned	Suparman Kusuma
	Sugiharto	Resigned	Martin Mulwanto
	J.G Godong	Resigned	YB Hariantono
	Cosmas Setiawan	Resigned	Indivara Erni
	Yuni Lastianto		Yuni Lastianto
	Tati Hartawan		Tati Hartawan

The replacement may possibly do in order to anticipate the decline in current account and saving account in 2014 compared to CASA in 2013. In 2014 the position of current account and saving account stood at IDR 16,186 billion, it was lower than its position in 2013 that stood at IDR 19,115 billion. The decline may be incurred due to higher interest rate of time deposit in the company and other banks. Customer seemed reduce available cash for current account and saving account and they preferred put the money for time deposit I with higher rate due to increase of BI rate. In 2014 the time deposit of the company was higher compared to its time deposit in 2013.

In 2014 the positive trend on growth of loan seemed still continue, the loan growth was 14 % compared to loan amount in 2013 (gross loan). Although there was a decline in economic growth the company was able to extend its loan portfolio. With low non performing loan that stood at 2.29 %, in spite of NPL increased compared to NPL in 2013, the NPL seemed in safe zone.