UNVR 2015: New Factory for BANGO and ROYCO

In 2015, the company was able to increase revenue 5.7 % up compared to revenue in 2014. The biggest contributor was given by Home and Personal care product. Although its product experienced slower growth in its sales which was at 3.2 % compared to its sales in 2014 that was at 9.8%. People may probably cut their expense for home care since the price of the basic foods increased. The cycle of the product may be at mature cycle, the company rejuvenated the product with new variance.

On other hand, the revenue growth of food and refreshment product increase in double digit that was 12.1 % in 2015. The company opened new factory to produce Bango and Royco. Both of them are market leader on each segment. The factory has annual capacity to produce 7 million units and it is located on 6300 meter square area.

Bango App, LeverEdge & GT Next Gen

The company is also developing digital application for its buyer, it builds Bango app which is contained information about food culinary and etc. the company intends to engage the customer and also to increase brand equity through digital campaign.

In the end of 2015, the company was also implementing GT Next Gen for traditional stores. GT Next Gen helps the shop owner to manage store in its availability of stock and help the store owner to improve its lay out store. GT Next Gen supports traditional store to compete with modern store in winning the competition.

In its business operation, the company has LeverEdge, within this application the sales team and distributor could make better decision in delivering the goods. The distribution is improved more accurate and more efficient.

TGKA 2014

Company analysis

The company is operating as distributor of principals such as Sari Husada, Nutricia Indonesia Sejahtera, Kimberly clark, Colgate and etc. besides that, the company also has trade mark which is familiar in the market such as Blue Gaz, Crystal dentiss and Tira S&D System.

Food and consumer product is dominated its revenue composition during last 5 years. Other segments were Gas (LPG) and Kitchen tool, but these segments are still small in its amount compared to food and consumer product. The Compound average growth of revenue during the period of 2011-2014 is at 9.9 %. In 2014 the growth of revenue was more than 15 % compared to revenue in 2013. The company is also selling books in its trading business.

The two biggest principals in 2014 were Sari Husada and Nutricia Indonesia Sejahtera. Several of its principals committed to replace the obsolete goods with the new one. Based on its financial statement in 2014, the biggest asset of the company was its trade receivable which was amounted to IDR 1.08 trillion in 2014. The biggest portion of trade receivable was at the current position; it was more than 65 % of total trade receivable. That means the business activities 

Java is the major place of its business activities, the second is sumatera. The access of road and infrastructure may be as the reason for concentrating in Java and Sumatera. At those islands, the inhabitants are also higher than other islands.

Based on central statistic bureau, the wholesale and retail trade sector has been growing over the last five years. Its CAGR is approximately at 6.1 %. The growth in demand of consumer goods may be possibly increase the growth of the sector.  

The company also acted as manufacture of principals, it has several cooperation agreement to produce the product of the principal such as Soho’s milk product, Sari Husada’s milk product, Anlene,Boneto milk product, produgen milk product and etc. The company earned manufacturing fee from the cooperation agreements. Among of the product in cooperation agreement is instant milk product. 

CTRA 2014

In 2014 Ciputra development was able to attain double digit in revenue growth that was 25 % up compared to revenue in 2013. In spite of the growth in 2014 was getting slower than growth in 2013 which was more than 50 % the company was expected keep its high growth in 2015. On September 2015, the revenue was at IDR 5.3 trillion rupiahs.

If we compare with three companies which comprises LippoKarawaci, Pakuwon Jati and Agung Podomoro Land, based on its revenue size the company had second largest revenue among of the 4 companies.

In 2014 its land for development was 1,726.3 at several strategic locations in indonesia such as Bali, Jakarta, Tangerang, Pekan Baru and Surabaya. The company has enough land for being developed to generate revenue in the future. The double digit growth at next two years is probably able to reach.

The company seemed more focus in real estate segment than rental, it was represented in its income statement, and the biggest portion of its revenue in 2014 was the real estate segment which was more than 80 % of total revenue. in spite of it concern in real estate, the company has established segments as sweetener in real estate business such as Golf course, family clubs, restaurant and recreation center.

APLN 2014

Company Analysis

Agung Podomoro Land is a part of agung podomoro group, this company has more than 40 subsidiaries which has been operating in indonesia. The company does not only run in real estate segment but it also has entered another segment such as theater. It has Blitz Theater which is located in Balikpapan.

Among of product has been recognized by people in indonesia, their products are Podomoro city, Kuningan City, SOHO, Green Bay, orchard park batam, Pluit city,Harco glodok and etc. The company is also engaged on an various agreements with Amaris hotel, Pullman hotel and Pop international hotel corporation and etc.

According to the financial statement, the company has steady revenue growth over period of 2012-2014. As shown in the graph, the revenue tends to grow during the period. On third quarter of 2015, the company was able to attain sales at IDR 3.9 trillions. The revenue of 2016 is predicted better than 2015due to improvement in economic growth of indonesia.

In 2014 the company could improve gross margin at 55.8% and it was better than gross margin on 2013 which was 52.2 %.

At recent, commissioner for eradication of corruption has investigated the case of bribe on project of reclamation at Jakarta bay. Through its subsidiary, Muara Wisesa Samudra, the company was accused give bribe to smoothen the project of reclamation. Muara wisesa samudra is subsidiary of Kencana Unggul Sukses that has Green bay project in Jakarta. The case has been appeared when the public election for governor of Jakarta will be started. 

HERO 2014

HERO.JK 2014

The company is a foreign investment which has been operating in indonesia since 1971. Its head quarter is located in Tangerang, the company operates in various retail business include Supermarket, Hypermarket, minimarket and specialty retail. The top brand of the company are Guardian, Giant, star mart and HERO. Its top brand generally operates in large format of retail business which has been running over indonesia, such as hypermart and hero supermarket. Its specialty store segment such as guardian, operates in healthcare segment and beauty segment.

The company is owned by Mulgrave Corp BV with more than 64 % of total shares; meanwhile the dairy farm company limited has more than 17 %.

In 2014 the sales growth was 13.2 % up compared to sales in 2013. The company was able to maintain stable gross margin during period of 2013-2014. In 2014 the profit margin decreased as the company should increase expense such as wages, advertising and promotion, transportation cost and etc. in 2014 the company did not has long term loan, it has paid the debt amounted to 2,8 trillion in 2013. The debt might be used for financing the expansion of stores.

In 2014, the company added 24 branched in domestic and the company was also opening new segment in furniture, the company opened its first IKEA store in indonesia. Giant had expanded to several cities at outside java island, the challenge on its expansion was less supply of electricity. As result of that the business plan was not able to be implemented soon. It should fit with the environment factor such the availability of power plant.

In 2014 the company operated 706 stores: 55 Giant extra, 165 hero supermarket and Giant express, 341 guardian and 145 star mart.

The first IKEA store was located in alam sutera at tangerang city, the store has capacity more than 35,000 square meter and the 1200 parking spaces is available for visitor. As the owner of first IKEA store in indonesia the company was optimistic to capture demand of good quality furniture product.

Pertamina 2014

Analysis

Pertamina is an oil, gas and geothermal state owned company. The company is not listed in Jakarta Stock exchange, but government decided to use independent auditor for auditing Pertamina. However, the company had acquired such portion of share of Elnusa, Oil Company which has been listed in stock exchange.

The company operates in both domestic and oversea at upstream sector until downstream sector in oil, gas and geothermal industry. The company and its group were participating in oil and natural gas joint venture at Algeria, Vietnam, Libya, Malaysia and Iraq. 90 % of revenue was achieved from domestic operation, revenue from abroad operation was only participating 10 % of total income.

In 2013 and 2014 the company had deferred employee benefit cost amounting to USD 2.9 billion; it was adjusted as equity account in those years. It was adjusted since 2003.

Almost 95 % of total revenue was collected from downstream segment; the upstream sector was only contributing 5 % of total sales. That means the company is more concerned in downstream. The company subsidiary in many segment, even in hospital and healthcare, hotel and air transportation.

Decrease in sales of 2014, was occurred to the lower subsidy from the government. The fund was recorded as part of revenue in that year.

In 2014, dana pensiun pertamina acquired 17.1 % share of elnusa tbk, Pertamina has 41.1 % share at Elnusa Tbk. 

Sumber Alfaria Trijaya AMTR 2014

Background

Based on central statistic bureau of indonesia, the average monthly expenditure per capita for food product in 2014 was 356,435 per person. If we calculate the expenditure of entire population of indonesia the calculation is IDR 365,435 x 252,2 million = IDR 97,94 trillion. That mean the whole population had spent more than IDR 97 trillion a month for food.

The number is possible not 100 % accurate with the real spending. But it could be used as a supposition.

AMTR

The company was established on 1989, based on Notarial deed no. 21 dated February 22, 1989. The company is engaged in retail distribution of consumer product. The company started to build mini-market networks since 2002, the networks comprises its own mini-market and franchise agreement. In 2014 the company had 6.939 units direct ownership networks and 2.922 units franchise agreement.

The company has subsidiaries both in domestic and oversea. Alfamart Retail Asia pte Ltd is its subsidiary in Singapore which has been operating in retail distributor of consumer product. The other subsidiaries are Midi Utama Indonesia, Sumber Indah Lestari (SIL) and Sumber Medika lestari (SML).

SIL and SML are operating in medical segment, trading of medical equipment and pharmacy respectively.

Sumber Alfaria Trijaya Tbk is owned by Sigmantara Alfindo, with 54.02 % share. The company had rental agreements with its clients for rent its stores and buildings. The cost is paid in advance for period of 12 months until 240 months. Once the rental agreement is expired, the company usually does the renewal of the agreement.

\The rental cost is amortized in its operation costs; in 2014 the amortization of prepaid rent in selling and distribution expense was IDR 535,729 million. And the amortization of prepaid rent in general and administrative expense is IDR 9,833 million.

In 2014 the company seemed advance its long term loan, the company increased its networks both its direct ownership and franchise agreement. In 2014 the direct ownership was advanced from 6,051 units in to 6,939 units and in 2013 its franchise agreement was advanced from 2,506 units in to 2,922 units. As the result of that the company was able to raise its revenue more than 19 % up in 2014 compared to its revenue in 2013. The number of direct ownership mini-market is greater in its quantity than number of franchised mini-market.

71 % of total income in 2014 was dominated by food product, consumer may possibly prefer to purchase food product in mini-market than in conventional shop. In 2013 the portion of revenue of food product was 70.5 %.