ASII 2015

Company Analysis

Astra international is subsidiary of Jardine cycle and carriage which is located in Singapore, Jardine C& C has 50.1 % shares, it is fully controlling Astra International. Jardine C & C is also having subsidiaries in Vietnam, Thailand, Singapore, Myanmar and Malaysia.

Jardine C & C run its various businesses in various segment, it comprises Direct motor interests and Astra international (automotive, financial services, infrastructure and logistic, heavy equipment and mining, agribusiness and information technology).

In 2015 jardine c&c acquired 24 % Siam city cement public company in Thailand and 22.9 % Refrigeration electrical engineering Corporation in Vietnam.

In 2015 net revenue of AI declined -8.7 % down due to slower economic growth in indonesia in 2015. The purchasing power of the consumer dropped due to the slowdown economic. The export of commodity declined as the demand from the emerging market dropped. As the result of that exchange rate tend to drop. The Agribusiness segment of AI was suffered in 2015, it s revenue sharply decreased, its revenue in 2015 declined 19.9 % compared to its revenue in 2014.

Financial services and information technology are two segments which continue to grow in 2015, net revenue of financial services increased 9.5 % compared to its revenue in 2014 and net revenue of information technology grew 16.3 % compared to its revenue in 2014.

Whereas the net revenue of 2015 in automotive segment declined more than 10 % compared to net revenue in 2014. Astra Honda Motor, its subsidiary, was beginning to sell the product at Philippines, the has exported motor cycle to the country to cover the decline of sales growth in indonesia.

Based on annual report both the market of motor cycle and the market cars fell. However the company was able to its market share both in cars and motor cycle, subsequently those were 50 % and 69 %.

 In 2015 the company continued to expand in its strategic business, it acquired several companies overwhelmed Acset Indonusa, Sumbawa Jutaraya, SKF Indonesia and Semarang –Solo Toll road. At the same year the company through its subsidiary, Astra Otoparts, was also building joint venture company with Bridgestone to produce tire.

In the same year its parent company, Jardine C&C entered new segment, cement industry. It acquired Siam City Public Company limited.

The CEO of Astra Graphia was called by eradication commission for corruption due to the corruption in e-ktp program. The case has been investigated by KPK since 2014, the suspect was Mr. Sugiharto. Astra Graphia supported the PNRI consortium, the loss in the project was amounted to more than IDR 2 trillion rupiah.

Although the company experienced decline both in its revenue and net income, the company keep maintain its gross margin and profit margin.  Among of the brand of the product were also stood as leader in its market share such as Honda, Toyota and Komatsu.

INTP 2015

Company analysis

The slowdown in economic growth affected many industries included cement industry. The economic growth in 2015 stood at 4.7 % and it was slower than economic growth in 2014 which was at 5 % growth.

The drop of commodity prices in 2015 weakened coal mining industry and crude palm oil industry. As the result of that, the cement industry was also hit. Based on indonesia cement association, the cement consumption in 2015 only increased 1.8 % compared to the cement consumption in 2014. The total indonesia cement sales attained 61 million ton in 2015.

Mr. Jokowi, the president of indonesia ordered the state owned cement company to reduce the cement price in 2015, therefore, the private company needs to change its cement price. Indocement reduced the cement price to defense its market share in the market. State owned cement companies have more than 40 % market share. Mr. Jokowi intends to help the low income people to buy cement with lower price.

As the result of that revenue of the company in 2015 dropped -11 % in comparison with revenue in 2014. However, the company still kept its margin. The revenue breakdown of the company is as the following table :

Product	2015	2014	Change
Cement	Production: 17.3 million	Production: 18.5 million	-6.5 %
	tons	Tons
	Sales : more than 17.1	Sales : 18.5 million ton	-8 %
	million ton (domestic)
	Export: 108,480 ton	Export: 79.310 ton	36.8 %
RMC	Production: 3.3377 ton	Production: 3.947  ton	-14.4%
(ready mix concrete)	Sales : 3.377 ton	Sales : 3.947 ton
Agregat	Production: 2.6 ton	Production: 2.7 ton	-4 %
	Sales : 2.4 ton	Sales : 2.8 ton	-14 %

Cement is as the main products of the company, type of cements of the company are PCC (Portland composite cement), OPC (ordinary Portland cement), OWC (Oil Well Cement), white cement and TR-30 white mortar.

The company was owned by Birchwood Omina Ltd (51 %), Mekar Perkasa (13.03 %) and Public (35.97 %). Brichwood omnia Ltd is controlled by Heidelberg Cement AG which is listed at German stock exchanges.

In 2015 the company invested its fund to purchased fixed asset which comprised conversion of raw mill / kiln mill electrostatic precipitator to bag house at plant 9 in palimanan factory, installation of flue gas desulfurization at Tarjun factory, replacement of gas turbine with aero derivative gas turbine.

In the future the company expects the government infrastructure project will be realized, it will be an advantage for cement industry.

SSIA 2015 : construction the key success

 Company Analysis

Surya Semesta Internusa (SSI) is run its business in various segments such as real estate, construction, Hotel and industrial estate. Based on its annual report shareholder of SSi comprises Arman Investment Utama (9.55 %), Union Sampoerna (8.75%), Persada Capital Investama (7.85%),Lynas Asia fund (6.87%) and others.

Arman Investment Utama is possibly owned by Mr.AWH, son of the shareholder of Djarum Group and Union Sampoerna is possibly related with Sampoerna family. Two combinations of two strong tycoon families may probably strengthen the access of fund for the company. 

The company owns gran melia hotel in bali island and in kuningan, Jakarta. It is also having the Glodok Plaza at Jakarta, the first modern shopping center In indonesia.

Its subsidiary in industrial estate, Surya Cipta Swadaya, it runs its business in industrial estate at Karawang, SuryaCipta City. It has prominent clients such as Astra International Tbk, PT Isuzu Astra Motor, PT Bekaert Indonesia, PT JVC Electronic Indonesia, PT Bridgestone Tire Indonesia, PT Nestle indonesia and etc. Surya Cipta city is on the 1400 hectare land in Karawang City.

The company is run by former employees of chase manhattan bank, mr. Johanes Suriadjaja as CEO and mr. The Jok Tung as Director. Mr. Johanes may probably relate with Saratoga Investama Sedaya Tbk which is acted as underwriter in IPO of Nusa Raya Cipta, Tbk.

In 2015 the revenue increased 9 % compared to the revenue in 2014. The company was able to increase its revenue although the economic growth was slowing down in 2015. More than 69 % of revenue is achieved by construction segment of Surya Semesta Internusa. The segment which experienced highest growth in 2015 is Industrial estate development. It increased 61 % compared to the segment revenue in 2014.

In 2015 the company was able to improve gross margin in comparison with gross margin in 2014. The infrastructure project of the government may probably advance the income of the company, especially in its construction segment which could create economic scale of construction unit.

The company is also developing the cikopo-palimanan toll road, it has agreement with Jasa Marga Tbk which is as the operator of the Toll-Road,

The company has 1.7 hectare land bank at Tanjung Mas, South Jakarta. Total area of Tanjung Mas Raya residential are 37 hectare. Others land bank are located at Bekasi, Karawang and Subang which are owned by Surya Cipta City.

Based on annual report in 2016, the company targeted new contracts amounting to 4.5 trillion rupiahs. It aims high rise building construction and infrastructure development from the government project.

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.