company analysis checked

8/8/2019 Company Analysis Checked

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Company History

PT Indocement Tunggal Prakarsa Tbk. (INTP) is one of Indonesias major producers of quality

cement and specialty cement products. INTP was established in 1985 and has integrated cement

operations. Since 2005, INTP has diversified its product range by introducing Portland

Composite Cement (PCC) in the market.

In 2001, the German based HeidelbergCement Group became the majority shareholder of

INTP. Since that time, a key strategic focus for INTP has been to reduce debt. In the first quarter

of 2009 INTP moved to a net cash position. On October 15, 2009, INTP received a Gold Rating

from the Environmental Performance Rating Program (PROPER), 2008-2009. Additionally,

INTP also garnered a Green Rating from the program. PROPER is an initiative of the Indonesian

Environment Ministry that encourages companies to implement sustainable environmentalmanagement. INTP is the second company to receive a Gold Rating since the program officially

began in 2002.

INTPs shares are listed on the Indonesia Stock Exchange. As of year-end 2009 the

Company maintained a market capitalization of IDR50.433 billion with 3.681.231.699 shares.

The Company employed 5.858 personnel as of December 31, 2009.

Facilities and production1. Facilities

INTP currently operates 12 plants, nine of which are located in Citeureup, Bogor, West

Java with a total cement capacity of 11.9 million tons per year (approximately); two in

Palimanan, Cirebon, West Java with a cement capacity of 2.6 million tons per year

(approximately); and one in Tarjun, Kotabaru, South Kalimantan. INTP also applied an

online production monitoring system. The system provides hourly updated monitoring

and viewing of cement operations, from raw mill to packaging, which can be accessed

directly by the Head Office. The system also provides an hourly update of stock

information of all cement plants and cement terminals. INTP also operate power

generation facilities at the Citeureup and Tarjun sites that provide all their electricity

requirements.

2. Production


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INTPs production is separated into 5 stage:

i.QuarryingLimestone, clay and silica sand are quarried by drilling and blasting and then brought to

the crushing plants located adjacent to the quarries. Crushed limestone, clay and silica

sand are then delivered by means of conveyor belt system or by truck.

ii.Drying and Raw GrindingRaw materials are dried in rotary dryers using waste heat from the kiln. The moisture

content is greatly reduced to improve quality control and handling. The dried materials

are mixed and fed to raw grinding mills to produce "raw meal". The blended raw meal is

delivered into storage silos.

iii.Kiln Burning and CoolingBlended raw meal is transported by pneumatic conveyors to the kiln's suspension pre-

heaters where it is preheated to achieve a high degree of calcinations (oxidization of the

calcium carbonate) before the raw meal enters the rotary kiln. Hot clinker from the

rotary kiln is discharged onto coolers where it is quenched and cooled by fresh air from

high capacity fans. Cooled clinker is delivered to clinker silos

iv.Finish GrindingFrom clinker silos, the cooled clinker is mixed with gypsum and fed into the grinding

mill to produce cement. The finished cement is then pumped into cement silos.

v.PackingCement is transferred from the storage silos to the packing plant for bag and bulk

loading. Bagging is done by high speed in line and rotary packing machines. Filled bags

are automatically weighed, sealed and loaded onto trucks by conveyor belt.


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Financial Report Overview INTP2009

INTPs consolidated net income in 2009 was IDR2,747 billion. This was a 57.4% increase from

the IDR1,746 billion recorded in 2008. Strong cash flow generation over the course of 2009

allowed INTP to increase the cash and cash equivalent position reached in the first quarter to

IDR2,623 billion by year-end. In addition to providing the Company with ample reserves to

finance future capital expenditure investment, this achievement has also substantially reduced

INTPs year-on-year interest expenses.

Although overall sales volume was down by 8.2% in 2009, net consolidated revenuesremained stable at IDR10,576 billion, an 8.1% increase above the IDR9,780 billion recorded in

2008. More importantly, the cost of revenues was down by 5.0%, allowing the Company to

record an increase in gross profit of 26.9%. The Companys domestic sales volume witnessed a

drop of 3.9% from 12.3 million tons in 2008 to 11.8 million tons in 2009. This was mainly due to

the Companys decision to maintain prices, which affected a drop in market share from 31.7% to


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30.2%. Export sales volume dropped 31.1% from 2.3 million tons in 2008 to 1.6 million tons in

2009. International prices for clinker remained very low, particularly in the first half of the year.

This was mainly due to an oversupply in the market due to the downturn in the global economy.

The Company maintained its domestic sales price at the levels reached in 2008. This resulted in a

14.3% increase of average domestic sales price, year-on-year. Net revenues therefore grew by

8.1% to IDR10,576 billion from IDR9,780 billion in 2008.

1. Cost of RevenuesWhile production costs per ton increased by 3.5%, INTPs overall cost of revenues

declined by 5.0% to IDR5,468 billion in 2009 from IDR5,756 billion in 2008. The

decline in cost was due to a number of interrelated factors including:

y Increased plant efficiency;y The decision to operate only the Companys most efficient plants;y The strengthening of the IDR in relation to the USD, over 60% of the Companys

cost are earmarked in in USD equivalents;

y Successful renegotiating of key supply contracts for variable cost contracts;y Strict control of all fixed costs.

Consequently the ratio of cost of revenue to net revenues improved to 51.7% in 2009,

from 58.9% in 2008.

2. ProfitabilityThe Companys gross profits rose by 26.9% from IDR4,025 billion in 2008 to IDR5,108

billion in 2009. In the meantime, gross profit margin advanced from 41.1% in 2008 to

48.3% in 2009. Income from operations expanded noticeably by 50.1% to IDR3,693

billion compared with IDR2,460 billion in the previous year. Accordingly, operating

margins also improved from 25.2% to 34.9%. EBITDA climbed by 39.4% from

IDR3,059 billion to IDR4,263 billion, while net income soared to IDR2,747 billion, a

57.4% increase from IDR1,746 billion posted in 2008. This increase was attributed to

among other factors:

y The growth of operating income as described above;y The decrease in interest expense and other financial charges from IDR124 billion

in 2008 to IDR40 billion in 2009; and


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y The decrease in booked foreign exchange losses from IDR73 billion in 2008 toIDR 8 billion in 2009.

3. Current AssetsCurrent assets rose considerably by 53.3% from IDR3,471 billion in 2008 to IDR5,323

billion in 2009, mainly due to the significant increase in cash and cash equivalent from

IDR790 billion to IDR2,623 billion. Trade receivables also rose from IDR922 billion to

IDR1,345 billion in line with the longer average collection period in 2009. The latter was

mainly due to an increase in sales outside of Java.

4. Non-Current AssetsThere was no significant change in non-current assets, which only increased by 1.8%

from IDR7,815 billion in 2008 to IDR7,953 billion in 2009.

5. Total AssetsTotal assets grew by 17.6% from IDR11,287 billion in 2008 to IDR13,276 billion in

2009.

6. Current LiabilitiesAs the loan from HC Finance B.V. matured in March 2009 and had been fully repaid, the

current maturities of long-term debts decreased from IDR628 billion in 2008 to only

IDR69 billion in 2009. As of 2009, INTP also maintained a one-month revolving loan

facility amounting to USD25 million equivalent to IDR235 billion (consisting ofUSD12.5 million from The Royal Bank of Scotland and USD12.5 million from Standard

Chartered Bank, Jakarta).

Trade payables to third parties rose by 68.9% from IDR289 billion in 2008 to

IDR489 billion in 2009. Taxes payable increased by 2.4% from IDR426 billion to

IDR437 billion, in line with the increase in income before corporate income tax expense.

Hence, current liabilities decreased by 8.9% from IDR1,944 billion in 2008 to IDR1,771

billion.

7. Non-Current LiabilitiesNon-current liabilities dropped slightly by 2.4% from IDR821 billion in 2008 to IDR801

billion in 2009 as the Company experienced a reduction in obligations under finance

lease.

8. Total Liabilities


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Total liabilities declined by 7.0% to IDR2,572 billion in 2009 from IDR2,765 billion in

2008.

9. Shareholders' EquityNet shareholders equity increased by 25.7% from IDR8,500 billion to IDR10,681 billion

primarily as a result of the significant increase in net income.

10.Capital ExpenditureThe Companys total capital expenditure in 2009 amounted to IDR700 billion. The

principal capital investments in 2009 included the following:

y Installation of new cement mills at the Companys Palimanan factory; the newmills will expand INTPs total designed capacity by 1.5 million tons to reach 18.6

million tons. These facilities are expected to come online in the first half of 2010

y In December 2009, INTP subsidiary PT Mandiri Sejahtera Sentra (MSS)expanded its ownership of its aggregate quarry in Purwakarta, West Java to 100%.

MSS has estimated aggregate reserves of about 95 million tons. The acquisition

has enabled INTP to become the market leader for aggregate supply operations

with total estimated reserves of 115 million tons.

y In October 2009, the Company acquired additional 50% shares of PT BahanaIndonor from GB Shipping Investment Limited, a Norwegian company, to fully

control this company by owning 100% share. PT Bahana Indonor is a shippingcompany that has two assets:

a. The MV Tiga Roda, a 10,000 DWT pneumatic cement carrier and

b. The MV Quantum One, a 8,000 tons capacity barge/floating terminal with

bag and bulk discharging capabilities.

The funding for all of the Companys expenditures was from internal cash flow. Risk

associated with foreign exchange exposure was managed internally.

11.DividendsIn 2009, INTP paid a dividend to shareholders of IDR552 billion or IDR150 per share,

which represents 31.6% of net income for the year 2008.

5 Years Financial Performance Overview


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In an instant, we can see from 2005 to 2009 INTPs having an increase in Net Revenue. They

also increased their Gross Profit from 36.12% in 2005 to 48.298% in 2009. In concurrence with

foreign exchange, although INTP have some derivative instrument to reduce the risk and secure

their free cash flow, INTPs still having a problem to manage it. This was proven in their

fluctuative FX Gain (Loss).

In harmony with HeidelbergCement strategic focus, INTP reduced their total liabilities

for each year. In 2009 INTP increased a massive market capitalization because the INTP stock

prices in the capital market increased to more than 200% compared with 2008. This is triggered

by capital expenditures made in 2009 by INTP as a purpose to increase their production capacity,

the increasing of capital expenditures was responded quite well by players in the capital market,

because by having a greater production capacity, INTP opportunity to increase its sales volume

would be even greater. Hopefully it will increase the existing market share. Thus, capital market

participants assess the INTP shares as collectible item.

Triggered by high demand, INTP share is increased. By planning the construction of new

factories in the future that aims to increase its production capacity, it is not impossible INTPs

stock price will rising up, with the forecasting of domestic cement demand growing, triggered

by the increasing in infrastructure development by government and private sector in Indonesia.

So with the increased production capacity accompanied by a high demand in the future, also

higher dividend per share growth will make INTP stock more promising in the future.

In Billion Rp Unless stated otherwise

I/S Overview 2009 G 2008 G 2007 G 2006 G 2005

Net Revenue 10,576Rp 8.14% 9,780Rp 33.53% 7,324Rp 15.79% 6,325Rp 13.11% 5,592Rp

Gross Profit 5,108Rp 26.91% 4,025Rp 45.73% 2,762Rp 28.58% 2,148Rp 6.34% 2,020Rp

Income from Operations 3,693Rp 50.12% 2,460Rp 54.43% 1,593Rp 49.16% 1,068Rp -12.03% 1,214Rp

EBITDA 4,263Rp 39.36% 3,059Rp 41.75% 2,158Rp 36.15% 1,585Rp -5.77% 1,682Rp

FX Gain (Loss) (8)Rp 89.04% (73)Rp -128.13% (32)Rp -165.31% 49Rp -2.00% 50Rp

Net Income 2,747Rp 57.33% 1,746Rp 78.16% 980Rp 65.26% 593Rp -19.86% 740Rp


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Comparison1. StockPrices and Beta Comparison

Stock prices and betafor INTP, Holcim (SMCB) and Semen Gresik (SMGR):

From table above, we can see that SMCB has the highest beta which means that

SMCBs stock prices more sensitive and volatile with the market movement. Beta of

INTP is 1.093, it means if the IHSG changed 1% then INTPs stock price will also

change 1.093%. SMGR has the lowest beta which means that SMGRs stock prices are

not sensitive as SMCBs stock prices.

2. PER and PBV ComparisonPrice Earnings Ratio and Price to Book Value Ratio for INTP, SMCB and SMGR:

In Billion Rp Unless stated otherwise

INTP 2009 G 2008 G 2007 G 2006 G 2005

Operating Cash Flow 3,184Rp 96.66% 1,619Rp 14.99% 1,408Rp 16.08% 1,213Rp -8.25% 1,322Rp

Total Assets 13,276Rp 17.62% 11,287Rp 12.44% 10,038Rp 4.58% 9,598Rp -8.90% 10,536Rp

Total Liabilities 2,572Rp -6.98% 2,765Rp -11.46% 3,123Rp -12.42% 3,566Rp -27.33% 4,907Rp

Net Shareholder's Equity 10,681Rp 25.66% 8,500Rp 23.30% 6,894Rp 14.27% 6,033Rp 7.18% 5,629Rp

Net Working Capital 3,787Rp 61.22% 2,349Rp 59.80% 1,470Rp 19.71% 1,228Rp -27.47% 1,693Rp

Net Borrowing (2,388)Rp -8628.57% 28Rp -97.45% 1,099Rp -50.43% 2,217Rp -27.64% 3,064RpCapital Employed 11,740Rp 15.51% 10,164Rp 9.77% 9,259Rp 1.93% 9,084Rp -9.83% 10,074Rp

Capital Expenditures 700Rp 13.27% 618Rp 33.19% 464Rp 17.77% 394Rp 106.28% 191Rp

Market Capitalization 50,433Rp 197.82% 16,934Rp -43.90% 30,186Rp 42.61% 21,167Rp 61.98% 13,068Rp

Issues Ordinary Shares (Million) 3,681Rp 0.00% 3,681Rp 0.00% 3,681Rp 0.00% 3,681Rp 0.00% 3,681Rp

Per Share Data (IDR)

Basic EPS 746Rp 57.38% 474Rp 78.20% 266Rp 65.22% 161Rp -19.90% 201Rp

DPS 150Rp 275.00% 40Rp 33.33% 30Rp -40.00% 50Rp - -Rp

BV Per Share 2,901Rp 25.64% 2,309Rp 23.28% 1,873Rp 14.28% 1,639Rp 7.19% 1,529Rp

Beta

INTP 1.093

SMGR 1.041

SMCB 1.366

Industry 1.1667

INTP SMCB SMGR

2009 13700 1550 7550

2008 4600 630 4175

2007 8200 1750 5600

2006 5750 670 5600

2005 3550 475 5600

PRICEYear


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3. GP

RVS

coresThese are GPRV scores for INTP, SMCB and SMGR that measures their attractiveness

compare to 146 companies in the Building Materials and Fixtures.

INT # SMCB SMGR

2005 36.12% 13.22% 38.39%

2009 48.30% 37.85% 47.08%

Gr$ % %

Pr$ & ' (

Marg' )

0 1ar


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4. Market Share ComparisonFrom table xxx, we can conclude that SMGR Group has the largest market share in

Indonesia. Exclude from cement quality, SMGR has the First Mover advantage in

Indonesias cement industry and SMGR also have advantage because its owned by

government. With current market share of 29% INTP have an opportunity to increase its

market share in the next year.

The opportunity to increase INTPs market share is inline with the development

of production capacity which is expected operating by 2011. With increased of

production capacity, the opportunity to expand INTP market share will be even greater,


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as one of biggest player in the Indonesian cement industry, cement produced by INTP

also known to have excellent quality. Supported by its massive marketing activities and

currently controlling one-third market share in the domestic market, INTP has a great

opportunity to increase its market share in the future.

But there is also a consideration in where the companies built their production

plant. SMGR built their plant in Java and Sulawesi while INTP built their plant in Java

and Borneo. If in the future Borneo have an advantage in infrastructure development,

INTP will have a competitive advantage over SMGR, vice versa. This scenario could

happen because the trend shows that development in outside Java is starting to growth.

Another consideration is how the companies manage their relationship to logistic cost,

because transportation is one of the factor in deciding the cement price. Concurrence with

logistic cost, INTP already made a vertical integration to their logistic channel by

acquiring a sea transportation company to gain another competitive advantage in the

future.

shareholder value

Cari harga saham tiap perusahaan selama 5 tahun

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PT Mineral 2 ndustri Sukabumi

PT @ aC

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PT Mandiri SejaC

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PTPionerbeton 2 ndustri

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PTA

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Nature of BusinessD

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PT Semen Gresik Tbk

PTSemen Tonasa

PT @ imaSepaja8

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Subsidiaries

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Cement @ ag Manufacturing

Limestone & Clay Mining

PT Indocement Tunggal Prakasa Tbk

Principal Activity

2 ndonesia

Domicile

Trading

Trass Quarrying

SC

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E eady Mix Concrete Manufacturing

E eady Mix Concrete Manufacturing

2 nvestmentCompany

2 ndonesia

2 ndonesia

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ndonesia

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resik, East Java

Tuban, East Java

Tuban, East Java

Pangkep, SouthSulawesi

TanjungPriok, Jakarta

@ atam, E iau

2 ndarung, WestSumatera

Location

PT Kawasan 2 ndustriA

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PT 2 ndustri Kemasan SemenA

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PT United Tractors SemenA

resik


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Masukin ke matrix

Cari PE ratio, ROE, PBV

Cari beta tiap perusahaan

Punya semen apa aja dan perbandingan market sharenya

Pro-forma Analysis

Siapa yang paling unggul di industry semen

Forecast di depan sapa yang lebih unggul

Cari EV/ton perusahaan kalau bisa bandingkan dengan perusahaan di asia tenggara.

GDP Inflasi Exchange rate di BI jadi base rate

Exposure

Biaya Produksi?

Penjualan semen ekspor

Pembelian Asset

Pembelian bahan baku

Pembangunan pabrik?

company analysis checked

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