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.