SMGR 2015

Macro
In 2015 the global economic growth declined as china’s economic growth at the lowest point in the 18 years. The slower growths were also occurred in India, Japan and Brazil. The positive growth was reached by USA as the government was successfully developing shale oil exploration in US. As the result of that the oil price dropped due to booming of shale oil production in US.
The slower global economic growth also decreased the commodity price as the demand for commodity dropped.

The fed fund rate increased on December 2015 as the central bank saw the positive trend in economic condition at US. Therefore, the rupiah exchange rate in 2015 was weaker than the exchange rate in 2014. The higher interest rate in US and the decrease of commodity price weakened rupiah exchange rate 12 % in comparison with exchange rate in 2014. The situation got the central bank decided to not decrease the interest rate in 2015. With that strategy central bank was successfully controlling the inflation rate in 2015. It was at 3.35 percent, in 2014 the inflation rate was higher than 2015, it was at 8.36 percent.

The economic growth of indonesia in 2015 was at 4.7 percent or it was lower than the growth in 2014 which was at more than 5 percent. the high interest rate decreased loan growth in 2015, the loan growth in 2015 only reached 10.1percent, and it compelled the investment declined.
In 2015 the total production of cement decreased 2.48 % due to slower growth indonesia. The consumption of cement slightly increased 0.85 % in 2015. In 2014 the consumption reached 6.75 %, higher than 2015. The higher consumption growth was from east indonesia region which contributed more than 6.7 % growth.

Company
In 2015 the company experienced a decline in its total sales; it dropped 0.1 percent down in comparison with total revenue in 2014. However, for non cement product, the sales increased more than 20 percent.

The decrease in sales growth was occurred due to slower economic growth in 2015, the slower growth of consumption decreased the revenue of cement product. Although slower trend was occurred in 2015, the company developed two factories in 2015 in Padang, west Sumatra and in Rembang, central java. The new factories will add the production capacity from  29.5 million tons to 35.5 million tons.

The market share of the company decreased from 43.7 % in 2014 in to 43 % in 2015, even though the company still could defense its market share in Java island which was at 38.7 % of total market share.

In spite of the sales dropped, the volume of sales increase, its organic growth was at 0.6 % up. COGS and operating expenses in 2015 declined compared to COSG and operating expense in 2014. The higher cost was happening due to higher exchange rate in 2015, the company should import spare part and higher electricity cost.

The company has 4 locations of integrated cement plant, 2 locations of grinding plants, 30 location of warehouses, 26 location of packing plant and 12 location of ports.
The company is also having subsidiary in Vietnam which run in cement business, Thang Long cement joint stock company.

INDF 2015

First Pacific

First Pacific indirectly owns 50.1 % of total stock of Indofood which is its head office located in indonesia. First Pacific is also shareholder of several companies, among of them are located in Philippine. Those subsidiaries run in various sectors, those comprise consumer foods (Indofood, goodman fieder), Telecommunication (PLDT), infrastructure (pacific light, Metro Pacific) and Natural Resource (Philex and RHI).

Within 50.1 % of total stock in Indofood, the company controlled the company’s business from its head office which is located at Hongkong.

In 2015, the company and wilmar made a joint venture to purchase Goodman Fieder, a food company based at Australia. Goodman Fieder produced various food and beverage products such as bread, milk, margarine, condiments, dips, mayonnaise, frozen pastry, cake mix, pies, savories, desserts, sauces and etc. 43 % of total revenue of Goodman Fieders is from Australia.

The company expanded to Australia in order to aim increase in sales at Asia as the region has high potential economic growth. The company considers that demand of food and beverage product in asia will increase at the future.

Indofood

In 2015 indofood has stagnant sales growth; it increased 0.7 % in comparison to sales in 2014. The slowdown of economic growth is as a reason of the slower sales growth. Decline in commodities demand may decrease the performance of agribusiness unit of the company. Turnover of agribusiness unit decreased 6.8 % in comparison to turn over in 2014. So did the flour unit, Bogasari, its revenue in 2015 decreased 3.51 % compared to revenue in 2014.

Consumer branded product unit as its key driver of sales growth is still growing at 6.02 % up in 2015. 

Acquisition of goodman fieder by the parent company is expected able to increase agribusiness unit and CBP unit in the future.

In 2015 the exchange rate rupiah to US dollar tends to drop as the export at that year decreased. The imported raw material, wheat, the main raw material for production of noodle, experienced higher price in 2015. In 2015 the company was able to maintain gross margin and current ratio at the same rate with in 2014.

In 2015 the profit margin decreased because it used more debt which increased the interest rate. In 2015 the company allocated the fund to acquire fixed asset for plantation and to finance its development. The company has acquired 50 & of CMAA in brazil, CMAA is a company which run in producing sugar and ethanol in brazil.

LPKR 2015: Healthcare still growing

Slowdown in economic growth in indonesia at 2015 has affected the sales growth of the company. Economic growth in 2015 was only 4.8 %, it was slower than the growth at 2014 which was 5 %. It is the lowest growth at the last five years.

Commodity market dropped as the result of slowdown in economic growth of emerging market such as china and india.

Almost of all revenues from segments at the company dropped in 2015, it was only healthcare segment which increased 24 % up in comparison with the same segment at 2014. As the result of that total revenue of the company in 2015 has fallen more than 20 % in comparison with sales in 2014.

In 2015 the company developed Monaco bay, holland village at manado and was successfully selling Burbank tower at Orange county, new central district business which is developed by the company. Pasadena and Glendale park at orange county of Lippo Cikarang were also contributing to revenue in 2015. Glendale park is a joint venture with Mistsubishi corporation from Japan, the company was able to sell more 97 % of total unit.

More than 43 % of its total land for development is at Goa Makassar Tourism Development in Makassar, The Company may allocate more fund in developing Makassar at Sulawesi Island in the future.  

Based on annual report of 2015, the biggest value of its land development is at Lippo Cikarang, its subsidiary at Cikarang, west Java. Lippo Cikarang has more than 1,196,782 hectare square land development. It is possible that the company will allocate more high value project at Lippo Cikarang as it developed Orange County, new CBD at Lippo Cikarang.

For healthcare business, the company plans to expand in this segment, it targeted 50 unit siloam hospital and clinic with 10.000 available bed. They plan to capture 15 million medical patients. For fund raising, the company has allocated stock to the market which was valued more than IDR 1.1 trillion. It corporate action decreased the ownership of LPKR in Siloam Hospital from 78 % in to 70 %.