SMGR 2015

Macro
In 2015 the global economic growth declined as china’s economic growth at the lowest point in the 18 years. The slower growths were also occurred in India, Japan and Brazil. The positive growth was reached by USA as the government was successfully developing shale oil exploration in US. As the result of that the oil price dropped due to booming of shale oil production in US.
The slower global economic growth also decreased the commodity price as the demand for commodity dropped.

The fed fund rate increased on December 2015 as the central bank saw the positive trend in economic condition at US. Therefore, the rupiah exchange rate in 2015 was weaker than the exchange rate in 2014. The higher interest rate in US and the decrease of commodity price weakened rupiah exchange rate 12 % in comparison with exchange rate in 2014. The situation got the central bank decided to not decrease the interest rate in 2015. With that strategy central bank was successfully controlling the inflation rate in 2015. It was at 3.35 percent, in 2014 the inflation rate was higher than 2015, it was at 8.36 percent.

The economic growth of indonesia in 2015 was at 4.7 percent or it was lower than the growth in 2014 which was at more than 5 percent. the high interest rate decreased loan growth in 2015, the loan growth in 2015 only reached 10.1percent, and it compelled the investment declined.
In 2015 the total production of cement decreased 2.48 % due to slower growth indonesia. The consumption of cement slightly increased 0.85 % in 2015. In 2014 the consumption reached 6.75 %, higher than 2015. The higher consumption growth was from east indonesia region which contributed more than 6.7 % growth.

Company
In 2015 the company experienced a decline in its total sales; it dropped 0.1 percent down in comparison with total revenue in 2014. However, for non cement product, the sales increased more than 20 percent.

The decrease in sales growth was occurred due to slower economic growth in 2015, the slower growth of consumption decreased the revenue of cement product. Although slower trend was occurred in 2015, the company developed two factories in 2015 in Padang, west Sumatra and in Rembang, central java. The new factories will add the production capacity from  29.5 million tons to 35.5 million tons.

The market share of the company decreased from 43.7 % in 2014 in to 43 % in 2015, even though the company still could defense its market share in Java island which was at 38.7 % of total market share.

In spite of the sales dropped, the volume of sales increase, its organic growth was at 0.6 % up. COGS and operating expenses in 2015 declined compared to COSG and operating expense in 2014. The higher cost was happening due to higher exchange rate in 2015, the company should import spare part and higher electricity cost.

The company has 4 locations of integrated cement plant, 2 locations of grinding plants, 30 location of warehouses, 26 location of packing plant and 12 location of ports.
The company is also having subsidiary in Vietnam which run in cement business, Thang Long cement joint stock company.

INDF 2015

First Pacific

First Pacific indirectly owns 50.1 % of total stock of Indofood which is its head office located in indonesia. First Pacific is also shareholder of several companies, among of them are located in Philippine. Those subsidiaries run in various sectors, those comprise consumer foods (Indofood, goodman fieder), Telecommunication (PLDT), infrastructure (pacific light, Metro Pacific) and Natural Resource (Philex and RHI).

Within 50.1 % of total stock in Indofood, the company controlled the company’s business from its head office which is located at Hongkong.

In 2015, the company and wilmar made a joint venture to purchase Goodman Fieder, a food company based at Australia. Goodman Fieder produced various food and beverage products such as bread, milk, margarine, condiments, dips, mayonnaise, frozen pastry, cake mix, pies, savories, desserts, sauces and etc. 43 % of total revenue of Goodman Fieders is from Australia.

The company expanded to Australia in order to aim increase in sales at Asia as the region has high potential economic growth. The company considers that demand of food and beverage product in asia will increase at the future.

Indofood

In 2015 indofood has stagnant sales growth; it increased 0.7 % in comparison to sales in 2014. The slowdown of economic growth is as a reason of the slower sales growth. Decline in commodities demand may decrease the performance of agribusiness unit of the company. Turnover of agribusiness unit decreased 6.8 % in comparison to turn over in 2014. So did the flour unit, Bogasari, its revenue in 2015 decreased 3.51 % compared to revenue in 2014.

Consumer branded product unit as its key driver of sales growth is still growing at 6.02 % up in 2015. 

Acquisition of goodman fieder by the parent company is expected able to increase agribusiness unit and CBP unit in the future.

In 2015 the exchange rate rupiah to US dollar tends to drop as the export at that year decreased. The imported raw material, wheat, the main raw material for production of noodle, experienced higher price in 2015. In 2015 the company was able to maintain gross margin and current ratio at the same rate with in 2014.

In 2015 the profit margin decreased because it used more debt which increased the interest rate. In 2015 the company allocated the fund to acquire fixed asset for plantation and to finance its development. The company has acquired 50 & of CMAA in brazil, CMAA is a company which run in producing sugar and ethanol in brazil.

LPKR 2015: Healthcare still growing

Slowdown in economic growth in indonesia at 2015 has affected the sales growth of the company. Economic growth in 2015 was only 4.8 %, it was slower than the growth at 2014 which was 5 %. It is the lowest growth at the last five years.

Commodity market dropped as the result of slowdown in economic growth of emerging market such as china and india.

Almost of all revenues from segments at the company dropped in 2015, it was only healthcare segment which increased 24 % up in comparison with the same segment at 2014. As the result of that total revenue of the company in 2015 has fallen more than 20 % in comparison with sales in 2014.

In 2015 the company developed Monaco bay, holland village at manado and was successfully selling Burbank tower at Orange county, new central district business which is developed by the company. Pasadena and Glendale park at orange county of Lippo Cikarang were also contributing to revenue in 2015. Glendale park is a joint venture with Mistsubishi corporation from Japan, the company was able to sell more 97 % of total unit.

More than 43 % of its total land for development is at Goa Makassar Tourism Development in Makassar, The Company may allocate more fund in developing Makassar at Sulawesi Island in the future.  

Based on annual report of 2015, the biggest value of its land development is at Lippo Cikarang, its subsidiary at Cikarang, west Java. Lippo Cikarang has more than 1,196,782 hectare square land development. It is possible that the company will allocate more high value project at Lippo Cikarang as it developed Orange County, new CBD at Lippo Cikarang.

For healthcare business, the company plans to expand in this segment, it targeted 50 unit siloam hospital and clinic with 10.000 available bed. They plan to capture 15 million medical patients. For fund raising, the company has allocated stock to the market which was valued more than IDR 1.1 trillion. It corporate action decreased the ownership of LPKR in Siloam Hospital from 78 % in to 70 %.

EXCL 2015

DUAL BRAND STRATEGY

In 2013 the company acquired axis, its competitor, to strengthen its position in the market. It could be seen in its asset, it increased sharply in 2014, from idr 40.3 trillion in to Idr 63.6 trillion. The company completed the acquisition of Axis on April 2014.

In 2015 the company may revamp its positioning in the market with dual brand strategy, the company opted to develop Axis brand in the same segment. Axis has brand image as less cost product for subscriber, the company launched axis brand with new form, and color of its brand name is changed in to purple. The company did not erase the brand from its portfolio.

While XL brand tends to recognized as innovative product for the customer, it always provides new technology and product in almost every year. In 2015 there were many innovative products that offered such as M-Fish, advanced M-Ads, Sisternet, E-learn future leaders.Ladyjek and Digibiz.
Among of its innovative product tend to be made for specific market such as Sisternet and Laadyjek are produce for female. In the future the company may choose to provide more product s for female to win the competition with other competitor such as Telkom, Indosat and 3.

In 2015 company experienced 3% declined in its sales due to decline in several segment of business compared to sales in 2014. One of segment which dropped was income from lease. On other hand, the company was able to increase its ARPU (average revenue per user) from Idr 28,000 in to idr 41,000 or increased more than 46 %.

The company added its infrastructure facilities in 2015, it comprised 6,770 BTS and 863 km of fiber optic transmission. XL is also planning to modernize its infrastructure technology to support its business.

In 2015 total asset dropped 7 % in comparison to total asset in 2014, the decrease was occurred because of decline in cash and cash equivalent, the company paid several debts off.  In 2015 the company ought to rise fund from sukuk.
The net loss in 2015 was occurred because of the depreciation of rupiah currency to US dollar.

Cooperation with other companies
XL Axiata has launched product of Rekening HP which was cooperated with Bank Mandiri in 2015. The company also cooperated with its ally, CIMB, launched on account powered by XL. The company focus to acquire high value customer.

PGAS 2015

The slowdown global economic growth decreased the demand of oil price, as the result of that the price of LNG declined in 2015. For indonesia, the GDP growth of 2015 is at 4.7 %, it was beneath the GDP growth of 2014 which is at 5 %. The same condition is also occurred in China, its growth is slower in 2015.

As the result of that the contraction on demand decreased the volume of sales in 2015. The volume declined from 865 MMSCFD in 2015 to 802 MMSCFD in 2014. The total revenue declined 5.7 % in 2015 in comparison with the revenue in 2014. The company is operating in both upstream and downstream through its subsidiaries. The biggest revenue is resulted from the industry segment which is almost 98 % of total revenue.  

The company started to build refueling gas station in 2015 at several locations across indonesia. besides that, the company tried to expand its segment for household. It has supplied natural gas to more than 12,727 houses in indonesia. Natural gas has better advantage than LPG, it was safer and cleaner than LPG. In 2015 the company has 6000 kilometers of transmission and distribution channel include new 201 km of first segment pipe from the gas field at Kepodang to Tambak Lorok, Semarang.

The company increased its loan in 2015 in order to establish the project as mentioned at above and to acquire new block in Kalimantan island. Through its subsidiary in upstream segment, Saka Energy, it purchased the block of Muara Bakau from GDP suez exploration ind BV with price amounted to USD 70.9 million. The financial leverage fell from 50.5 % in 2015 in to 46.5 %.

TLKM 2015

TLKM: development of IT Infrastructure as key success factor of double digit growth

Analysis

In 2015 Telkom attained high growth rate in its revenue which is at 14.2 % compared to revenue in 2014. The biggest portion of revenue came from data, internet and IT service, it was more than 46.7 % of total revenue at 2015. It exceeded revenue from cellular which was at 36.4 % of total revenue.

In cellular segment, Indonesia has more than 340 million subscribers; Telkom acquired more than 47 % of total market share. The market shares of competitors which consist of indosat, Htchison and XL Axiata subsequently are at 21 %, 16% and 13 %.            

In data, internet and IT services revenue in 2015 increased more than 26.5% compared to its revenue in 2014. The growth was participated by indihome subscribers, data cellular and internet revenue. The subscriber of mobile broadband increased from 31.2 million users in 2014 to 43.8 million users in 2015. The new adopted technology of smart phone may be possibly support the product.

For satellite segment, the company plans to replace recent satellite with new satellite that has wider range of coverage. Telkom 3S, its new satellite, is able to cover region of asia pacific and india.

The trend of revenue tend to not follow the economic growth, the slower of economic growth in indonesia in 2015 is not influencing the revenue growth of the company. The revenue experienced double digit growth, indeed. The increase may be probably occurred due to wider range of IT infrastructure over the islands in archipelago, as the result of that the company experienced double digit growth due the growth of subscribers in cellular service, mobile broadband service and etc.

The company set its position as the leader in digital industry, they allocated its fund to build IT infrastructure in each sector that comprises land, air and sea. In 2015 the company established the undersea fiber optic broadband highway from aceh to papua. Through this infrastructure the customer in papua, sulawei and Maluku islands are able to access better internet data connection service. The company has also built more than 100 thousands 3G and 4G BTS.

Bundling Product with Citibank: Citi-Telkomsel Credit card

In 2015Citibank launched its innovative product, it is a bundling product between Banking product and telecommunication company’s product, Citi-Telkomsel Credit Card, the claimed that the product is the first bundled credit card product in indonesia (annual report Citibank, page of 15). Telkomsel is also having partnership with other state owned bank such BRI, BTN and etc. 

GGRM 2015

Company analysis

In 2015 the company attained positive growth in its revenue, although its export revenue declined. Cigarette is the main product of the company, in 2015 its contribution is more than 98 %, and another type of product is paperboard, entertainment and etc. the machine made cigarette is still dominated as its biggest contributor of its revenue, which is 90 % of total sales. Hand rolled clove cigarette is only contributing 8.3 % of total revenue.  

Accordance to annual report, the volume of revenue declined as the economic growth in 2015 was not performed as expectation. The volume of the revenue in 2015 is 78.6 billion bars; it is less than the volume in 2014 which is at 80.6 billion bars. Besides that, the volume of the revenue declined due to weakened purchasing power of consumer. The 7.9 % growth in revenue is occurred due to higher price of product.

In 2104 the company established surya abadi semesta, subsidiary which is expected producing e-cigarette in the future. In 2015 it was not commencing its commercial activities yet. Almost of the kretek market declined in its volume of sales except SKM full flavor which rose 8.9 %. Government has made tight policy for cigarette industry either in its excise duty or in its advertising policy.

In 2015 the company launched new product, Surya Pro Mild brand. This product may be as the rejuvenation of Surya Pro series which its life cycle may be possibly at maturity. It consider to not add its capacity of production yet at recent.