Hexindo Adiperkasa (HEXA), the sole distributor of Hitachi and John Deere heavy equipment, booked a net profit of US$20.68 million in 2020, which declined 39.4% from US$33.4 million in 2019. Revenues fell 46% to US$172 million from the previous US$320 million. Sales of heavy equipment and commission services to third parties dropped 58% to US$77.8 million. Sales of spare parts fell 37% to US$49 million, and revenue from repair and maintenance services fell 20% to US$44.5 million.  

Hexindo’s gross profit declined 48% to US$48.5 million, and operating profit fell 41.3% to US$26.8 million. The royalty payment dropped 50% to US$3.4 million. Interest income dropped 56.3% to US$203 million while interest expenses fell 79.7% to US$333 million from earlier year US$1.64 billion. Hexindo recorded US$7.3 million on foreign exchange (forex) transactions last year, compared to zero in 2019. But it recorded US$1.11 billion losses on changes in the fair value of hedging derivatives.

The Company’s cash flow balance, however, improved slightly as it generated net cash of US$32.4 million from operating activities last year, higher than US$30.8 million generated in 2019. HEXA also cut investment, spending US$736 million on acquiring fixed assets, lower than the US$2.13 billion it spent in 2019. 

Hexindo also paid a short-term bank loan of US$24 million in 2020 and paid a dividend of US$27 million, funded by internal cash and a short-term bank loan of US$27.7 million. Hexindo’s cash on hand and in banks increased to US$25.1 million by the end of December 2020, from US$15.8 million by the end of December 2019.

Surya Esa Perkasa (ESSA), a producer of liquefied petroleum gas (LPG), suffered a loss of US$19.12 million in 2020, against a profit of US$2.63 million in 2019, as revenue fell 20.97% to US$175.5 million pressured by the impact of COVID-19 pandemic. The Company, owned by TP Rachmat & Boy Thohir, recorded selling expenses of US$2.23 million, compared to only US$0.26 million in 2019. The Company’s assets reached US$792 million, while liability amounted to US$480 million. ESSA has a cash and cash equivalent of US$73.77 million by the end of December of 2020.

Housing construction firm Pembangunan Perumahan Presisi (PPRE) booked a net profit of Rp115.9 billion in 2020, dropped 73% year on year (y/y) as revenue fell 39.5% y/y to Rp2.3 trillion and gross profit dropped 48% y/y to Rp442 billion. PPRE’s assets reached Rp6.89 trillion, while liability amounted to Rp4.05 trillion. The Company has a cash and cash equivalent of Rp271 billion by the end of December 2020.

PPRE continues focusing on increasing the burn rate by accelerating the completion of existing projects. It boosts the contribution of mining services as the recurring income. The Company also needs to expand its market (outside the group). For this year, PPRE targets to book revenue of Rp2.9-3 trillion. This year, it allocates capital expenditure (capex) of Rp336 billion, mainly for purchasing heavy equipment. A bank loan will fund some 70% of its capex.   

Property developer Ciputra Development (CTRA) has completed the debt refinancing of global bond S$150 million (US$111.94 million) due in September 2021. The Company redeemed the notes with new issuances maturing in 2026 and carrying an annual interest rate of 6%. Currently, CTRA has a total debt of Rp10 trillion, around 15% of foreign currency. It plans to spend around Rp1.1 trillion this year, targeting marketing sales of around Rp5.87 trillion, a 6.72% rise from last year’s Rp5.5 trillion.

Mineral producer Merdeka Copper (MDKA) issues two series of local bonds amounting to Rp1.5 trillion, part of its Rp3 trillion bond issue program. Said bonds have a tenor of 367 days with an annual coupon rate of 7.5% and three years with 9.85% coupon rates. The offering starts today and will last tomorrow. MDKA will use bond proceeds to pay the Single Currency Revolving Facility of $25 million to fund exploration activities of the Tujuh Bukit Copper Project, expected to complete this year. 

Bakrie & Brothers (BNJBR) plans to issue 297.81 million new shares or convertible bonds on March 26, 2021. It expects to record a loss in 2020 but narrowed from 2019 as the rupiah is considered stable and tends to appreciate against the US dollar. BNRB said its earning had turned around in the third quarter (Q3) of 2020 as oil and gas projects and non-oil-and-gas improved. Orders from biggest automotive clients returned in Q3. BNRB focuses on debt restructuring to Glencore (Rp8 trillion debt) and Eurofa (Rp1.5 trillion debt).

 

DISCLAIMER: AUTHOR HAS NO POSITION IN STOCKS MENTIONED

By Yohannes Obor