On December 4, 2018, PT United
Tractors, Tbk (UNTR) announced that the company had completed the process of
acquiring 95% stake of PT Agincourt Resources (PTAR), the owner of the Martabe Gold Mine in South Tapanuli,
North Sumatra Province. Thus, UNTR now has five business segments ie the distribution
of heavy equipments, coal mining, coal mining services, construction, and gold
mining, the last two segments have only joined the group in recent years.
Interestingly, in contrast to the contribution of the constructions which is
still very small, the gold mining successfully contributed Rp665 billion in net
income before tax in the first quarter of 2019, or 16% of the company's total
pre-tax income.
Wonderful Company: Ultrajaya Milk Industry
With only 17 liters per capita,
Indonesia’s milk consumption is one of the lowests in the world, but the volume
of milk production in the country is even lower, that about 75% of domestic
milk needs are supplied by imports, mainly from Australia. This is a very good
advantage for PT Ultrajaya Milk Industry, Tbk (ULTJ), one of the largest local milk
producers in country, who never have any significant difficulties in marketing
their dairy products, which is of course sold at lower prices than imported
milk but with similar quality, or even better. As a result, the company’s
revenue consistently increased every year. And with 24.4% annualized return of
equity as of first quarter 2019, ULTJ is one of the most profitable companies which
listed in the Indonesia Stock Exchange.
Adira Dinamika Multifinance
Warren Buffett once said that, when calculating
the value of a company, do not only look at the company’s tangiable assets like
plants, inventories, receivables etc, but also look at intangiable assets such
as reputation, power of brands, and company’s competitive advantages. In short,
if there are two companies with the exact same book value, but company A have a
better reputation and its products also more well-known to the public than
company B, then Buffett would pick company A, even if the price is higher.
Bank BTPN Syariah (BTPS)
Since long time ago,
if we wanted to buy stocks for long-term investment on the Indonesia Stock
Exchange, there were only two sectors to choose from: Consumer goods and
banking. However, for those of you who are sharia account holders, you cannot
buy banking stocks, so the choice is limited to consumers. Other options are
Islamic banking stocks, but the earnings power of Islamic banks is generally
not as good as conventional bank’s. Luckily, for BTPN Syariah (BTPS), based on
its performance as of third quarter of 2018 which is fairly good, we may
consider the stock for investment. Okay, here we go.
Surya Toto Indonesia
The stock of PT
Surya Toto Indonesia, Tbk (TOTO) is probably not popular in the stock market because
of its illiquidity, but the corporate name is very well-known as a producer of
sanitary wares such as toilets, bathtubs, sinks, and the like, while the brand of
'Toto' itself is already a quality assurement for toilet wares. Companies with
strong power of brands such as TOTO are usually ideal for long-term
investments. So when the stock instead fell continuously from 700s until 300s in
the last three years, I wonder what's wrong?
Sido Muncul
Some time ago I
heard a picturesque story. On 15 October 2017, in Bantul city, Yogyakarta, there
was a wedding with unusual dowry, which is not gold or alike, but stocks, ie 50,000
shares of Sido Muncul (SIDO) at a price of Rp555 per share (so the total is
Rp27,700,000, or about US$ 1,910). This is interesting, because the groom was a
stock market investor that started to know stocks since 2013, so he really meant
it when he delivered the stocks as the dowry. The question is why SIDO
that is choosen as the dowry, and not the other stocks?
Bumi Citra Permai
The name of Bumi Citra Permai (BCIP) most probably
doesn’t ring a bell, but the company just released its first half financial statements,
which at a glance shows impressive results. The net profit increased more than
twice, the annualized ROE 25.5%, and the PBV was just 0.5 times at the price of
Rp125 per share. Is it a jackpot opportunity?
Invisible Correction of the Stock Market
Until Tuesday, 12
September 2017, foreign or international investors kept selling their stocks in
Indonesia stock market so much, that their net buys position from the beginning
of the year, which almost reached Rp20 trillion in the last April, today it has
been minus aka turned net sells, precisely at minus Rp7 trillion. I also received
many questions, why foreign investors keep selling? However, the most important
thing here is not the reason why they’re getting out, but what are the effects
of these conditions to the market. And what is the best investment strategy to
counter these issues?
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