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

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Prospect of United Tractors After Acquired Martabe Gold Mine

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?