Stable growth of cable manufacturers
With the exception of Jembo Cable (JECC), four other cable manufacturers listed on Indonesia Stock Exchange (IDX) reported stable growth in the first nine months of 2019. Jembo Cable suffered 9.7% decline, while Kabelindo Murni (KBLM) posted 15.4% growth in sales revenues. Sucaco, the largest player, enjoyed a strong sales revenue growth of 9.4% in Jan-Sep 2019.
Manufacturing investments
PT Dexin Steel Indonesia, co-owned by Tsingshan Steel (the world’s largest stainless steel producer) and Delong Holdings, might have missed commercial production start of the 3.5 million tons per annum carbon steel factory in Indonesia Morowali Industrial Park (IMIP)—-estimated investment of US$1 billion—-scheduled last quarter. IMIP in Morowali, Central Sulawesi, however, continues to attract more investments.
Dunlop joins Rubberman, GMF Aero?
Dunlop Aircraft Tyres Ltd, global maker and retreader of tires for aircrafts, has decided to partner with PT Rubberman Indonesia in the development of first plant in Karawang, West Java, Indonesia. Dunlop starts its investment with retreading plant, which may cost around Rp1 trillion. Commercial operation is scheduled in 2021. The company will later on build tire production facilities.
Changing Diet & Carbohydrate Policy
PT Sarimelati Kencana Tbk (PZZA), owner of Pizza Hut outlets in the country, booked net profit of Rp149.24 billion in Jan-Sep 2019, an increase of 47% from the corresponding period last year, thanks to strong sales revenue growth and improved margins. The Company reported sales revenue growth of 14% to Rp2.94 trillion thans to expansion of outlets.
Improved Infrastructure & Tourism
Gili Mas, the newly built port in West Nusa Tenggara (NTB), welcomed luxury cruise ship the Sun Princess on Tuesday (Nov 5), bringing in 1,988 passengers and 862 crews. The new port, built by state port management company Pelindo III, is expected to be fully operational in February 2020 as part of Jokowi administration’s program to develop the so-called ‘New Bali’ in five provinces.
9M Results: Integrated Feed-Poultry
Four feed-poultry players listed on Indonesia Stock Exchange (IDX) reported sales revenue growth of 11% to Rp79.7 trillion in Jan-Sep 2019, but their combined net profit dropped 28.2% to Rp3.87 trillion. Still, they committed more for future growth, which can be seen in significant growth in cash used for acquisition of fixed assets.
9M Results: Media Companies
Media Nusantara Citra (MNCN), parent of RCTI and MNC TV, maintained its leading position in the media industry with sales revenue growth of 13.4% to Rp6.27 trillion in the first nine months of 2019. Surya Citra Media (SCMA), parent of SCTV and Indosiar, meanwhile, posted modest growth of 4% only to Rp4.14 trillion in the same period.
The promising mineral processing industry
Cita Mineral Investindo (CITA), bauxite miner and co-owner of Indonesia’s first smelter grade alumina (SGA), is among winners of 2019. The Company booked net profit of Rp740.5 billion in the first nine months of 2019, an increase of 33% from the corresponding period last year, ensuring smooth expansion of the SGA.
Retailers in 9M: Mixed Results (2)
Erajaya Swasembada (ERAA), the largest retailer for gadgets, which in the past few months expanded outlets for JUUL electric cigarette, generated net profit of Rp165.6 billion only in the first nine months of 2019, crashed from Rp636.5 billion in the corresponding period last year due to falling sales revenues and squeezed margins.
Retailers in 9M: Mixed Results (1)
Convenience store operator Alfamart (AMRT) booked net profit of Rp650 billion in Jan-Sep 2019, jumped by 94% from the corresponding period last year even though its sales increased by 9.1% only to Rp54.1 trillion. Looks like that Alfamart continued to boost its net profit margin from below 1% for many years to over 1.2% in the first nine months of 2019.