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.

ASII 2015

Company Analysis

Astra international is subsidiary of Jardine cycle and carriage which is located in Singapore, Jardine C& C has 50.1 % shares, it is fully controlling Astra International. Jardine C & C is also having subsidiaries in Vietnam, Thailand, Singapore, Myanmar and Malaysia.

Jardine C & C run its various businesses in various segment, it comprises Direct motor interests and Astra international (automotive, financial services, infrastructure and logistic, heavy equipment and mining, agribusiness and information technology).

In 2015 jardine c&c acquired 24 % Siam city cement public company in Thailand and 22.9 % Refrigeration electrical engineering Corporation in Vietnam.

In 2015 net revenue of AI declined -8.7 % down due to slower economic growth in indonesia in 2015. The purchasing power of the consumer dropped due to the slowdown economic. The export of commodity declined as the demand from the emerging market dropped. As the result of that exchange rate tend to drop. The Agribusiness segment of AI was suffered in 2015, it s revenue sharply decreased, its revenue in 2015 declined 19.9 % compared to its revenue in 2014.

Financial services and information technology are two segments which continue to grow in 2015, net revenue of financial services increased 9.5 % compared to its revenue in 2014 and net revenue of information technology grew 16.3 % compared to its revenue in 2014.

Whereas the net revenue of 2015 in automotive segment declined more than 10 % compared to net revenue in 2014. Astra Honda Motor, its subsidiary, was beginning to sell the product at Philippines, the has exported motor cycle to the country to cover the decline of sales growth in indonesia.

Based on annual report both the market of motor cycle and the market cars fell. However the company was able to its market share both in cars and motor cycle, subsequently those were 50 % and 69 %.

 In 2015 the company continued to expand in its strategic business, it acquired several companies overwhelmed Acset Indonusa, Sumbawa Jutaraya, SKF Indonesia and Semarang –Solo Toll road. At the same year the company through its subsidiary, Astra Otoparts, was also building joint venture company with Bridgestone to produce tire.

In the same year its parent company, Jardine C&C entered new segment, cement industry. It acquired Siam City Public Company limited.

The CEO of Astra Graphia was called by eradication commission for corruption due to the corruption in e-ktp program. The case has been investigated by KPK since 2014, the suspect was Mr. Sugiharto. Astra Graphia supported the PNRI consortium, the loss in the project was amounted to more than IDR 2 trillion rupiah.

Although the company experienced decline both in its revenue and net income, the company keep maintain its gross margin and profit margin.  Among of the brand of the product were also stood as leader in its market share such as Honda, Toyota and Komatsu.

INTP 2015

Company analysis

The slowdown in economic growth affected many industries included cement industry. The economic growth in 2015 stood at 4.7 % and it was slower than economic growth in 2014 which was at 5 % growth.

The drop of commodity prices in 2015 weakened coal mining industry and crude palm oil industry. As the result of that, the cement industry was also hit. Based on indonesia cement association, the cement consumption in 2015 only increased 1.8 % compared to the cement consumption in 2014. The total indonesia cement sales attained 61 million ton in 2015.

Mr. Jokowi, the president of indonesia ordered the state owned cement company to reduce the cement price in 2015, therefore, the private company needs to change its cement price. Indocement reduced the cement price to defense its market share in the market. State owned cement companies have more than 40 % market share. Mr. Jokowi intends to help the low income people to buy cement with lower price.

As the result of that revenue of the company in 2015 dropped -11 % in comparison with revenue in 2014. However, the company still kept its margin. The revenue breakdown of the company is as the following table :

Product	2015	2014	Change
Cement	Production: 17.3 million	Production: 18.5 million	-6.5 %
	tons	Tons
	Sales : more than 17.1	Sales : 18.5 million ton	-8 %
	million ton (domestic)
	Export: 108,480 ton	Export: 79.310 ton	36.8 %
RMC	Production: 3.3377 ton	Production: 3.947  ton	-14.4%
(ready mix concrete)	Sales : 3.377 ton	Sales : 3.947 ton
Agregat	Production: 2.6 ton	Production: 2.7 ton	-4 %
	Sales : 2.4 ton	Sales : 2.8 ton	-14 %

Cement is as the main products of the company, type of cements of the company are PCC (Portland composite cement), OPC (ordinary Portland cement), OWC (Oil Well Cement), white cement and TR-30 white mortar.

The company was owned by Birchwood Omina Ltd (51 %), Mekar Perkasa (13.03 %) and Public (35.97 %). Brichwood omnia Ltd is controlled by Heidelberg Cement AG which is listed at German stock exchanges.

In 2015 the company invested its fund to purchased fixed asset which comprised conversion of raw mill / kiln mill electrostatic precipitator to bag house at plant 9 in palimanan factory, installation of flue gas desulfurization at Tarjun factory, replacement of gas turbine with aero derivative gas turbine.

In the future the company expects the government infrastructure project will be realized, it will be an advantage for cement industry.

SSIA 2015 : construction the key success

 Company Analysis

Surya Semesta Internusa (SSI) is run its business in various segments such as real estate, construction, Hotel and industrial estate. Based on its annual report shareholder of SSi comprises Arman Investment Utama (9.55 %), Union Sampoerna (8.75%), Persada Capital Investama (7.85%),Lynas Asia fund (6.87%) and others.

Arman Investment Utama is possibly owned by Mr.AWH, son of the shareholder of Djarum Group and Union Sampoerna is possibly related with Sampoerna family. Two combinations of two strong tycoon families may probably strengthen the access of fund for the company. 

The company owns gran melia hotel in bali island and in kuningan, Jakarta. It is also having the Glodok Plaza at Jakarta, the first modern shopping center In indonesia.

Its subsidiary in industrial estate, Surya Cipta Swadaya, it runs its business in industrial estate at Karawang, SuryaCipta City. It has prominent clients such as Astra International Tbk, PT Isuzu Astra Motor, PT Bekaert Indonesia, PT JVC Electronic Indonesia, PT Bridgestone Tire Indonesia, PT Nestle indonesia and etc. Surya Cipta city is on the 1400 hectare land in Karawang City.

The company is run by former employees of chase manhattan bank, mr. Johanes Suriadjaja as CEO and mr. The Jok Tung as Director. Mr. Johanes may probably relate with Saratoga Investama Sedaya Tbk which is acted as underwriter in IPO of Nusa Raya Cipta, Tbk.

In 2015 the revenue increased 9 % compared to the revenue in 2014. The company was able to increase its revenue although the economic growth was slowing down in 2015. More than 69 % of revenue is achieved by construction segment of Surya Semesta Internusa. The segment which experienced highest growth in 2015 is Industrial estate development. It increased 61 % compared to the segment revenue in 2014.

In 2015 the company was able to improve gross margin in comparison with gross margin in 2014. The infrastructure project of the government may probably advance the income of the company, especially in its construction segment which could create economic scale of construction unit.

The company is also developing the cikopo-palimanan toll road, it has agreement with Jasa Marga Tbk which is as the operator of the Toll-Road,

The company has 1.7 hectare land bank at Tanjung Mas, South Jakarta. Total area of Tanjung Mas Raya residential are 37 hectare. Others land bank are located at Bekasi, Karawang and Subang which are owned by Surya Cipta City.

Based on annual report in 2016, the company targeted new contracts amounting to 4.5 trillion rupiahs. It aims high rise building construction and infrastructure development from the government project.