FKS is one of the largest, yet underreported, business groups in the country with interest in various sectors including agriculture, food, coal mining, and logistics. The group is one of the largest importers of soybeans through IDX-listed PT FKS Multi Agro Tbk (FISH) and Singapore-registered trading company Enerfo Pte Ltd.
FKS Multi Agro currently has market capitalization of Rp3.1 trillion (US$210 million) only, slightly above equity as at March 31, 2022 (US$163 million). In the first quarter of 2022, FISH generated sales revenue of US$356 million, an increase from US$293 million in the corresponding period last year. FISH posted net profit of US$10.7 million, inched up from US$10.3 million in the same period last year.
FKS Group also controls another IDX-listed company PT FKS Food Tbk (AISA), which was acquired from Tiga Pilar Sejahtera (TPS) Group few years ago following the rice business conflict and the associated political pressures. FKS Food reported an impressive sales revenue growth of 28% to Rp449 billion in the first quarter, but margins were squeezed by higher average costs. AISA, accordingly, posted loss of Rp13.3 billion in the period against profit of Rp2.17 billion in first quarter last year.
FISH and AISA, however, are only portion of FKS Group’s food and agriculture business. The group controls two sugar companies PT Permata Dunia Sukses Utama (PDSU) and PT Makassar Tene through PT Tene Capital. FKS is also partner of Toyota Tsusho and Malaysian Flour in the flour business.
FKS Food gained grounds four years ago with acquisition of 8.5% shares for 11.4 billion yen by MDF Co Ltd, a joint venture between Mitsui & Co Ltd and the Development Bank of Japan Inc (DBJ). Kusuma Family controls 82.9% shares in FKS Food, while the balance is held by Proterra (8.5%) and MDF (8.5%).
Outside the food and agriculture, FKS invests in coal logistic business through Goku Resources. One of its famous investment is in Tapin Coal Terminal (TCT), which entered into business dispute against PT Antang Gunung Meratus (AGM), member of Baramulti Group. AGM, as you know, filed police report against TCT to the South Kalimantan police few years back, wherein AGM accused TCT of illegally occupying its land. This is an interesting case to watch because Ito Sumardi, former chief of the police detectives (Kabareskrim) at the National Police, has been commissioner of AISA. Ito is known for close relationship with national police chief.
FKS Land, property unit of FKS Group, has been working with Ciputra Group in the development of 120 hectares of land in Makassar, South Sulawesi province in the so-called Tallasa City project. In Jakarta, the group owns two strategic land plots at the Central Business District and operating Natura Industrial Estate in Muara Kapuk, North Jakarta.
FKS Group has just secured US$350 million syndication loan, which can be expanded with US$100 million. Interesting to see what the group will do next in the food and agriculture sector.
DISCLAIMER: NO POSITION IN STOCKS MENTIONED IN THIS ARTICLE
