TBIG 2015

Company analysis

The company was founded in 2004, it operates in infrastructure sector.  The company build telecommunication tower and lease the tower for Telecommunication Company such as Telkom, Indosat, XL Axiata,Hutchison 3 Indonesia and etc.

The shareholders in 2015 comprised 30.08% wahana anugerah sejahtera, the remains were provident capital indonesia and public.

The company is a part of Saratoga group which is owned by Soeryadjaya family. The group runs its business in consumer, infrastructure, and mining and energy sectors.  Based on its annual report in 2015, the company owns 11,389 tower sites, 936 shelter only sites and 64 DAS network.

In 2011, the company acquired PT Mitrayasa Sarana Informasi (infratel) to strengthen its position in telecommunication tower market in indonesia.

The company implemented such strategies in advancing its performance, those comprise maximize co-location; build to suit strategy for each towers or sites and agreement restructure.

The company was able to increase sales 3.5 % up in 2015 in comparison with sales in 2014. 40 % of total revenue was derived from telkomsel in 2015. The second biggest contributor is indosat, its contribution was 25 % of total sales in 2015.

Revenue from smartfren telecom and indosat experienced significant increase with 13 % growth. In 2015, the company could improve its gross margin from 84.7 % in 2014 to 87 % in 2015.in addition; the company could improve its net profit margin from 22.4 % in 2014 to 42.2 % in 2015. As the result of that, the company increased its ROE from 35.7 % in 2014 to more than 94 % in 2015.

In 2015 the company was restructuring its master lease agreement with its clients, the cost of electricity was charged to operator, as the result of that cost of sales decreased significantly and gross profit margin was improved.

The company is having strong bargaining power to its client or buyer such as Telkom and indosat. As long as smartphone penetration is still high, the subscribers would continue to grow in the future. And business of telecommunication tower will be in line with growth of subscribers.

INDY 2015

COMPANY ANALYSIS

Indika Energy was established in 2000, the company operates in mining and energy sector. The company did its Initial Public Offering in 2008. The company has three business lines, it comprises energy resources, energy service and energy infrastructure.

It has the third biggest coal mining in indonesia, Kideco Jaya Agung. 63.47 % of indika energy’s shares is owned by Indika Mitra Energy. The ultimate shareholders of the company are mr. Agus Lasmono and Wiwoho Basuki Tjokronegoro. Mr. Agus is son of mr. Sudwikatmono, cousin of mr. Soeharto, former second indonesia president.

The biggest parts of company revenue are contributed by Mitra Bahtera Segara Sejati (MBSS), Trpatra group and Petrosea. Tripatra is the contractor company in oil mining at Cepu, central java which is owned by Exxon mobile cepu Ltd. The biggest part of revenue was from Exxon mobile cepu, its strategic partner in energy service business line.

To face the downturn in coal mining business lines, the company conducted several strategies to anticipate its downturn. It stopped projects that related with coal, it was reducing operating costs, it looks for government infrastructure project and it also targeted 35,000 MW new power generation project of government. In power plant industry, it established Cirebon Energy Prasarana in 2015 to capture energy demand in Java Island.

Its subsidiary, Mitrabahtera segara sejati (MBSS) was suffered due to the decline in coal demand; it operates in one-stop coal transportation and logistics. It operates a floating crane which serves coal handling management service from port, barging, river and sea transportation to offshore vessel.

In 2015, the revenue declined 1.1 % compared to its revenue in 2014. The revenue decrease in its subsidiaries, petrosea and MBSS were as the factor that decreased its revenue. Other segments, Tri patra recorded higher revenue in 2015 than revenue in 2014. Its revenue increased more than 13.7 % which was dominated from Exxon mobile cepu Ltd. Coal trading segment was also attaining significant increase in its revenue in 2015.

The increase of ST loan in 2015 was used to finance working capital of Tripatra, coal trading business unit and petrosea.

In 2015, the government expenditure increased 5.4 %, it was higher than government expenditure in 2014 which its increase was 2.0 %. Along 2014-15,the priority program of the government was infrastructure development such as toll road, power generation and etc. The business sector that was related with the government project experienced better growth.

UNITED TRACTORS 2015

United Tractors was established in 1972, it became the authorized distributor of Komatsu and Tadano in 1973. As a subsidiary of Astra International, UT continued to expand its business in mining, construction, remanufacturing and energy along its milestone in 1972-2015.

Astra International Tbk has more than 59 % shares in united tractors, the remaining share is owned by public.

Due to low price of coal UT looked for new business line for diversification of its business portfolio. In 2015 it added energy, construction industry and gold mining as new business lines. The corporation has done several acquisitions of companies in another business line to diversify its business portfolio.

At 2015, it acquired Acset Indonusa Tbk which operated in construction industry business, it bought 50.1 % shares.  To enter energy business line, it also developed power plant at central java in the same year through PT Unitra Persada Energia. In addition, to improve mining business line, the company acquired gold mining at Sumbawa, it purchased 80 % shares of PT Sumbawa Jutaraya through its subsidiary, PAMA. In addition, the company has been appointed as the exclusive authorized distributor of SCANIA, an on road bus product for indonesia. Bus rapid transit system of Jakarta, Trans Jakarta has already used SCANIA in its transportation service.

The diversification is done because the revenue of the company in the past five years is in negative trend. The decline of coal price which influenced heavy equipment sector including Komatsu product was one of factors that are decreasing income. The decrease in demand of commodities was occurred in global market as the GDP growth in china was slower in 2015. Although Komatsu product is the market leader of heavy equipment in the world, the influence of downturn in its business line is inevitable.

The company’s revenue in 2015 was still dominated by mining contracting sector; it was more than 61 % of total sales. The second largest sector contribution was from construction machinery, it was more than 27 % of total sales.

Despite the revenue declined the company was able to improve gross margin in 2015, the US dollar currency which was stronger increasing the margin. Besides, the ROA and ROE were suffered, those ratio declined because of the decrease of net profit in 2015.

The company seemed trying to turn its performance better with diversification; it did strategic acquisition to enter new business line.

                

DSFI 2015

PT Dharma Samudera Fishing Industries Tbk was founded on 2nd October 1973 in Jakarta. The corporation is engaged in fishery business sector including catching, processing, and selling and trading fishery product. The company is not only purchasing the goods from fishery center but it also operates vessel to catch the fish at the ocean.

The company sells various goods such as tuna, octopus, fillet, cuttlefish and others. The company is supported by Kendari branch which operates for east indonesia area.

More than 95 % of total revenue was contributed by export in 2015. The rest was from local market that was only 3.5 % of total revenue in same year.

As the result of that, the company’s revenue is highly correlated with market in oversea. The foreign exchange rate very influenced its business. In domestic, its revenue was dominated by fish head, fillet and whole.

In addition, new government policy which is fighting against illegal fishing, it is supporting fishery business in indonesia including for its food processing. For comparison, in Thailand and Vietnam, fishery industry was bigger than fishery in indonesia despite indonesia has larger ocean area. In the future, the fishery market and its seafood manufacture will probably be larger in its size.
In 2015 the sales sharply increased 23 % higher than its sales in 2014. Tuna was the key driver to sales growth. Tuna made more than 40 % of its total sales.

In 2015, the gross profit margin of the company slightly declined from 13 % in 2015 to 12.6 % in 2014. Although its sales growth increased sharply during 2011-2015, its gross profit margin was low, the company sells raw material to abroad. It needs value added product to advance margin.

The higher cost of raw material possibly decreased the gross profit margin in 2015. The increase in fixed asset was happened due to additional asset in machinery and equipment, transport equipment and construction in progress and also revaluation of asset.

TOWR 2015

The corporation was established in 2 June 2008 at Kudus, central java, it main business is operating tower lease at across Indonesia and Netherlands. In the same year, the company did horizontal integration, the company acquired protelindo which operates in same business.

In 2015, despite there was slower economic growth with 4.7 % growth; the company still added towers to enhance their revenue for the future. Two of its clients were closing down their business; it consisted of Bakrie Telecom and Telkom flexi. As the result of that the company cancelled 874 site lease for bakrie telecom and 185 site leases for Telkom Flexi.

In its tower lease business, the company owned sites and towers and it leases those assets to telco which installs its equipment such as antenna and microwave at the tower. The company has three main clients; they are Hutchison 3 indonesia, Telkomsel and XL axiata.

SMN recruited contractors from at around tower to minimize cost of maintenance. It also adopted build to suit strategy in tower development which allows the Telco to choose the tower location as their needs. The company also implemented asset light strategy to increase colocation.

Business expansion has still been done gradually until at recent, at the end of 2015 the company had more than 12,200 towers in Indonesia and Netherlands.

In 2015 the company was able to advance its revenue 8.9 % up in comparison with revenue in 2014. The gross margin slightly increased, from 94.2 % in 2014 to 95.9 % in 2015.  The decrease in its cost of sales was attained from renegotiation of maintenance cost with its supplier.

Meanwhile increase in its operating cost was caused by acquisition of iforte which increase salaries and compensation. In addition, the increase in investment properties was occurred due to increase in number of tower. The company added its tower portfolio. The main contribution for its revenue growth was contributed by Telkomsel. The biggest part of revenue was from Hutchison 3 Indonesia which was 39% of its total revenue.

 For its debt financing ratio, the company decreased its debt financing ratio from 54 % in 2014 to46 % in 2015.

               

SKLT 2015

Macroeconomic

In 2015, economic growth in indonesia was slowing down in comparison with growth in 2014. The economic growth in 2015 was below 5 % or it was the lowest growth in the last five years.

 Expert said that the slower growth was caused by lower demand in commodities at china and india. The decline of demand decreased export and it increased exchange rate of rupiah to dollar. It was more expensive to purchase dollar with rupiah.

Therefore the price of manufacture increased, as we know among of manufacture industries need to import goods or raw material for production. The increase of price is charged to consumer. The consumer tends to decrease their spending due to higher price. The manufacture reduced their production.

In September 2015 central bank decreased BI 7 day repo rate to 4.75 % as inflation rate declined in to 3.02 %.

Company analysis

In 2015, the company was able to increase its sales 9.3 % in comparison with sales in 2014. The sales growth in 2015 dropped from 20.17 % in 2014 to 9.3 %. Consumer possibly decreased their spending. The biggest portion of revenue was from goods segment. The company purchased goods from third parties who were possibly players in marine fisheries and marine culture. The goods comprise shrimp, fish and etc.

The company was started from home industry that produced cracker, and then its founder, HS commenced to act as exporter of shrimp and other sea products to over sea. Finna, its branded product was familiar in Netherlands, mostly for cracker product. Its factory is located in Sidoarjo, east java.

The company produced branded products that consist of sauce, chili sauce, food seasoning, cracker and etc. it also produced bread. Its subsidiary, Pangan Lestari is trading shrimp and shrimp feed. 

In 2015, the company increased its total debt from IDR 83 billion to IDR 92 billion. Some part of the debt was used to purchased machinery and software installation. This asset under construction is expected to be finished in 2016.

The company maintained its debt financing ratio at around 24 % and its current ratio at around 1.2. It was possibly done to maintain its net profit margin.

MDRN 2015

The company was founded in May 12, 1971 as PT Modern Photo film. The company had been as the sole distributor of all fuji film products since 1971. It also supervised 1200 fuji image plaza outlets across indonesia until august 2015. The company has signed the agreement to return back the right as sole distributor of fuji film brand to the principal. It decided to focus to its new business, seven eleven business through its subsidiaries, Modern Sevel indonesia.

Seven eleven

The company started in seven eleven business since 2009, the business of seven eleven is called as convenience store business. Indonesia is as the 17^th country which is opening seven eleven franchise in the world. it signed the letter of intent for master franchise of seven eleven in 2008 at Dallas, USA. Until December 2015, the company has opened 188 convenience stores in Jabodetabek area. The company sets its convenience store as food destination store which is selling fresh fast food and drinks with good quality.

To strengthen its position, the company cooperated with warabeya nichiyo for building central kitchen. In addition, the company also produced packaged food and drink, it also built central warehouse for its logistic operation.

Seven eleven is divided two types of store, small formats and large formats. There have been 81 small formats stores and 107 large format stores formats in jabodetabek area. Small format area is less than 100 SQM and large one format area is larger than 100 SQM. For small format stores, it is usually located inside such building,

The company was closing down more than 20 stores during 2015 due to underperformance reason. The stores were under-performance because of government regulation which banned alcoholic product. However, the company still intends to expand its business, it will focus to small format stores which will be opened inside the building of train station, offices, apartment and trade center.

The company also runs business in medical imaging, photography and graphic art and printing.

As the closing down of 20 stores in 2015, its revenue declined 14.5% in comparison to revenue in 2014. COGS and operating expense in 2015 were also higher than COGS and operating expense in 2014. The higher cost was caused by the write off in inventory of fuji film brand. The company decided to return back its distributor right to principal. In addition, the corporation has to pay compensation to laid off employee in 2015.

72 % of total sales was contributed by seven eleven segment, its imaging business was only making 19 % of total sales and the remains was its IT solution business.

Modern International belongs to Asialink electronic pte ltd (23.76%), Inti putra modern (14.32%), CIMB private equity (9.09%), Morgan Stanley and co Intl PLC (8.42%) and public (44.4%). The company is part of modern group which was established by otje honoris. In 1992 the business was inherited to his four son, they are Luntungan honoris, Sungkono Honoris, Samadikun Hartono and Siewie Honoris. Besides, the group also has business in real estate through Modernland realty.

   

BENTOEL INTERNASIONAL INVESTAMA

Bentoel group was formerly named as “Strootjes Fabriek Ong Hok Liong” which was established by Chinese businessman, Ong Hok Liong. In 1954, the company turned its name in to PT. Perusahaan Rokok Tjap Bentoel. The company was the first tobacco company that produced machine-rolled cigarette or Sigaret Kretek mesin that is packaged by plastic.

In 1987, Rajawali corpora acquired Bentoel and turned its name as Bentoel Internasional Investama. Rajawali corpora which is owned by Peter sondakh took as controller in managing the company.

Afterwards, in 2009, Rajawali corpora sold Bentoel to British American Tobacco Indonesia Tbk. The companies were mergered in to Bentoel Internasional Investama Tbk. British American Tobacco decided to use Bentoel Internasional Investama Tbk as its name.

For Sigaret Kretek Tangan (SKT), the company produces Bintang Buana Raya, Tali Jagat Raya, Sejati, Sejati Gold, Rawit and etc, For Sigaret Kretek Mesin (SKM), the products are Bintang Buana Filter, Tali Jagat Filter,Bentoel Biru, Bentoel Biru Slim, Uno Mild, One Mild, neO Mild, Star Mild, X mild, Club mild and etc. The company also has Sigaret Putih Mesin (SPM) products; there are Dunhill, Dunhill Switch, Dunhill Lights, Lucky Strike, Pall mall and etc.

Based on its annual report, the company focused to two brands, Dunhill and club mild. Dun hill was the key driver of its rapid growth in 2015.

In 2015, the additional fixed asset comprises asset under construction, equipment purchasing and building and infrastructure. The increase of fixed asset is done for its target to accelerate sales growth rapidly.

In the same year, the company was able to increase its sales 16 % higher than its sales in 2014. 2 % of the growth was contributed by Dunhill brand. Strong advertisement and brand improvement of the product are the key success factors.

The increase of excise duty in every year is possibly affecting revenue acceleration in the future. Government tends to increase its excise duty. However, government still concern to small size industry, the highest rate is charged for Sigaret Putih Mesin (SPM). For SKT of small enterprise, it is only charged 0 % increase for its excise duty. (source: finance ministry). In the last 10 years the tobacco factories decreased from 4669 units in to 754 units across indonesia.

Therefore, the company intends to reduce cost, it has applied on line procurement to pay and sourcing management improvement along 2015.

WIIM 2015

 The company was established in 1962 in Petemon, Surabaya. At that time, the corporation produced hand-rolled cigarette. The founders were Lie Koen Lie, Tjioe Ing Hien, Tjioe Ing Hwa and Oei Bian Hok. The company started to produce machine-rolled cigarette in 1988.

Wismilak Diplomat brand has been launched at first time in 1989; it is one of its famous brand. For mild cigarette, the company commenced to sell the mild product in 2005. Later, the corporation commenced its production at its new factory at Bojonegoro in 2002. Others company’s factories are located at Buntaran and Kertosono at east java.

Based on its annual report in 2015, the company totally has five factories across east java. For distribution, it has been supported by its subsidiary, PT. Gawih Jaya, its distributor. At recent, the company also produced cigarette flavoring, filter rods and other cigarette parts.

To survive in Kretek industry, the company used a strategy; it decided to stop its expansion since 2014 due to the slowdown of kretek industry growth. It focused in improvement of product quality and human resources quality. It increased prices of the product and it maintained the existing buyer. As the result of that, the company was able to increase sales in 2015. The sales growth was driven by hand-rolled cigarette (SKT).

In 2015, the company could increase its sales more than 10 higher than its sales in 2014. Hand-rolled cigarette product segment grew significantly in 2015. It increased 29 % in comparison with same segment in 2014. For machine-rolled cigarette segment, it increased at around 5 % compared to same segment in 2014. The corporation could improve its gross margin in 2015 from 30.5 % in 2014 to 32 %.

In 2015, the debt financing ratio also decreased due to installment payment and it was not searching new debt as the economic growth was slowing down in 2014-2015.

The company holds its money for expansion. It focused in human resource and product quality investment.

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GJTL 2015

The company was established in 1951, based on its notarial deed no.54 dated August 24^th. The company owns plants in Tangerang and Serang, its head office is located on Hayam Wuruk Street, Jakarta. The corporation produces tires and tube for vehicle and goods.

The company has affiliated group at Europe, USA and China. GITI has head quarter office in Singapore. The famous brands are GT radial, GITI, Primewell, Runway and Dextero. The company has sponsored many sport show such as US-based formula drift as its promotion.

The company and its group have 8 plants in china and indonesia, one plant in south Carolina in USA. Based on annual report in 2015, the ultimate share holder of Gajah Tunggal is Denham Pte Ltd which owns 49.5 % shares. Another big shareholder is Compaigne Financiere Michelin which has 10 % shares.

Manufacture of rubber based product industry tend to be categorized as cyclical sector, it is influenced by business cycle. In 2016 the sales of automobile slightly increased. In 2016, the automobile industry started to recover.

In October 2016, the sales of car at period of January – October increased 4.05 % higher than sales in same period in 2015. Based on data from GAIKINDO, the national sales of car on October 2016 was 874,847 units. Whereas, based on AISI the national sales of motorcycle at period of January – October was 4,992,598 units. It decreased 9 % lower than sales in same period at 2015.

In 2015 the revenue slightly decreased 0.8 % compared to sales in 2014. Gross domestic product in 2015 was under 5 % or the slowest growth at the past five years. It influenced automotive sector including rubber industry. Inversely, the gross margin in 2015 was improved than gross margin in 2014, it increased from 22.9 % in to 24.5 %. Then, the company experienced loss in 2015 due to incremental of interest expense and other expense in the year.

In 2015 the company increased its debt to finance its capital expenditure, it developed new building and purchased new machine for its expansion business plan. The project was predicted accomplished in 2016. 

FAST 2015

Fast Food Indonesia is founded in 1978, it was commencing its commercial business in 1979. At recent, the corporation has 540 outlets across indonesia 2015, it added 47 outlets in during 2014.

Fast food indonesia is also having relation parties that run in various business such as Jagonya Music and Sport Indonesia, Music Factory Indonesia, Gelael indotim, Gelael Supermarket and etc. The corporation is also affiliated with Indofood Sukses Makmur Tbk. Indofood group invested in Fast Food indonesia through PT Indoritel Makmur International Tbk with 35.84 shares. Gelael family, another share holder own 43.48 shares of the corporation. The president commissioner of the company is mr. Anthony salim, the shareholder and CEO of Indofood Sukses Makmur Tbk. Fast food indonesia is in line with business core of Indofood group which is concerning in food and beverage industry. The outlets also sell pepsi cola as its drink menu, Indofood group produces Pepsi Cola as it its beverage product.

Asset turnover of the company in 2014 was 1.94, in the 2015 asset turn over slightly decreased in to 1.93. The fragmented competition in fast food segment possibly made slower incremental sales and slower revenue growth. however, the key success factor of this business is not only about its price but it is determined by secret recipe and its strategy in to choose its store location. Kentucy Fried chicken is introduced by a retired soldier who has his secret recipe in cooking fried chicken.

In 2015 the company was able to increase its sales 6.3 % higher than its sales in 2014. The company did expansion by adding 47 outlets across indonesia. The company used franchise scheme in operating its businesses. In 2015 the franchise fee was 6.9 % of total sales.

Retail support center (RSC) at Jakarta is dominating corporation’s revenue; in 2015 its contribution to total revenue was 39.9 % of total sales. The fastest revenue growth in 2015 was contributed by Makassar RSC which increased 12 % in comparison with revenue in 2014.

The company put Makassar city as potential market for selling its product. Based on central statistic bureau, South Sulawesi has higher province GDP growth than national GDP growth.