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 %.