You can contact the author (Teguh Hidayat) by email, teguh.idx@gmail.com. The author live in Jakarta, Indonesia.

See my pictures in Instagram, @teguhidx.

Cash Flow Analysis in (Simplified) Value Investing

If you used to read company’s financial statement, you will know that the Indonesian standard format of financial statement comes as: 1. Statement of Financial Position (Asset, Liabilities, and Equities). 2. Statement of Profit and Loss (Revenue, till Net Income). 3. Statement of Changes in Equities and lastly. 4. Statement of Cash flows. Normally, if writer do a quick financial statement analysis, we only look at asset changes to company’s net income, and seldom look to Statement of Cash Flows, then the question comes. What is the difference between Statement of Cash Flows and Statement of Profit and Loss? What if the company made profits in Statement of Profit and Loss, but the cash received (stated in the Statement of Cash flows) is smaller? Then, What if the company stated negative cash flows? And so on.

Ristia Bintang Mahkotasejati

Ristia Bintang Mahkotasejati (RBMS) is one of many property developers specializing in residential building that listed on IDX, whose shares in recent years are dormant after the company posted disappointing performances, in line with the sluggishness of property industry itself. But in last 2017, RBMS acquired two subsidiaries that operates in hotel industry and modest housing development, and in 2018 the result begins to show up where RBMS at Quarter 1 posted revenues of Rp24.5 billion, soaring over the same period in 2017 which is only Rp551 million, and so is the share begin to appreciate, but on the other hand, the valuation, at a glance, is still very cheap with PBV only 0.3 times. Future prospects?

Alam Sutera Realty

One of the most memorable experiences of my early years in the Indonesian stock market was when I watched how property stocks, which previously devastated by the global crisis in 2008, gained so much in the next few years, and the rise is in line with the excellent financial performance of property developers at the time, where they had great return on equity on the level 20 – 30%, thanks to the high rate of economic growth in Indonesia (had reached 6.9% in 2011) that boosted the prices of property as many capital owners invest their funds in the property. At those years, a property developer could purchase land at a bargain price, develop it into an elite residential area, and later sell it at exorbitant prices. The areas on the outskirts of Jakarta such as Serpong, Cikarang, Cibubur, developed rapidly during this period.