Profile PT. Mayora Indah

• Type:

Public (IDX: MYOR)

• Industry

Consumer products, processed food and beverage industry

• Established

Jakarta, Indonesia

February 17, 1977

• Head Office in Jakarta, Indonesia

The factory in Tangerang, Bekasi, danSurabaya

·                     Managing Director

     Ongkie Tedjasurja

·                     Director

     Gunawan Atmadja

·                     Commissioner

     Jogi Hendra Atmadja

• Product

Confectionery, candy, wafer, chocolate, cereal, coffee, instant noodles

 

 

Mayora at a glace

Over the decades, MAYORA Group has grown to become one of the recognized names in the Fast Moving Consumer Goods Industry. The ability to identify market needs and the commitment to produce quality products have made MAYORA group currently have well-known brands in the world, such as: Kopiko, Danisa, Astor, Energen, Torabika, and many more.

Founded in 1977, Mayora Group has been progressively transformed from a humble home biscuit industry into one of the biggest Fast Moving Consumer Goods Companies.

MAYORA Group became a public listed company in 1990, by listing its share on Jakarta Stock Exchange, and throughout the following years, MAYORA Group continues its rapid expansion to become an ASEAN based Company, by establishing production facilities and marketing offices in several South East Asia countries.

Currently, MAYORA Group products are sold in many countries around the world. Supported not only by modern logistic and warehouse management system, but also powered by strong distribution network, MAYORA Group has maintained its product availability in the market.

MAYORA Group has proven itself as a manufacturer of quality products that gain some recognitions and awards such as “Top 100 Exporter Companies in Indonesia” from Swa magazine, “Top Five Best Managed Companies in Indonesia” conducted by Asia Money, “Top 100 public listed companies” in 2009 and 2010 as the first position in sector of Food and Beverages conducted by Investor Magazine Indonesia, as well as “Best Manufacturer of Halal Products” in 2004 by Majelis Ulama Indonesia.

Vision & Mission

To become a quality manufacturer of food and beverage products that is trusted by the consumers both in domestic and International market, and control a significant market share in every category entered.

To provide added value to all company stakeholder.

To provide a positive contribution to the environment and the country where the company operates.

 

 

 

 

 

 

ANALYSIS OF FINANCIAL STATEMENT OF PT MAYORA INDAH, TBK

 

 

LIQUIDITY RATIOS ANALYSIS

 

Current Ratio shows the short-term liabilities of a company. If the amount is above 1, the company is saved or isn’t in trouble. Based on the data that provided on the graph, we can conclude that PT. Mayora Indah, TBK isn’t in trouble for short-term liabilities.

Second is quick ratio. Quick ratio is similar to current ratio, but they have different effect. If the quick ratio’s amount is below 1 so the company is having trouble in inventory. We can see from the graph that PT Mayora Indah, TBK’s quick ratio is above 1, so it has no problem

Third is cash ratio. Cash ratio measures the level of inventory and receivable that ignored. Higher cash ratio means better condition. Cash ratio called good if the number is above 1, but here, as seen in the graph, the number of cash ratio in 2005-2011 are below 1. It’s mean the company still can’t cover its current liabilities. The best cash ratio is in 2005, and in 2011 the cash ratio is going down from the years before.

 

 

 

 

EFFICIENCY RATIOS ANALYSIS

           

In this analysis we divided the trend into two graphs.  The first graph shows inventory turnover, account receivables turnover, total assets turnover and fixed assets turnover.  Then, the second graph shows day’s sales in inventory and average collection period.

We can calculate the efficiency of a company by using them. As we can see in the graph account receivables turnover, total assets turnover, fixed assets turnover are almost steady, but the average collection period in 2011 is lower than 2005. Here, higher turnover in lower average collection period means good. For fixed assets turnover, if the sales higher than fixed assets, it means the company can producing efficiently.

 

 

LEVERAGE RATIOS ANALYSIS  

           

There are three graphs here. The first graph shows debt ratio which is increasing every years,  the second graph is time interest ratio’s graph which trend is up and down in different years. The last graph is for debt to equity ratio, equity ratio and equity multiplier.

Here, lowest debt ratio is not always good, debt ratio is depends on the profit of the company, and also debt ratio bring higher financial risk. Then the second important part is debt to equity. Higher debt to equity means higher risk for the company. So, the highest risk of PT Mayora, Tbk  is in 2008.

 

PROFITABILITY RATIOS ANALYSIS

 

           

            The last ratio analysis is profitability ratio. Higher profitability ratio means good to the company. Profitability ratios influence the profit of the company. Actually, we lack of dividend data for years 2009 until 2011. So we decided to didn’t include the data of dividend per share, dividend payout ratio and plowback ratio for the graph.

            Here, we can see on the graph, there are gross profit margin, operating profit margin, net profit margin, OIROI, Return on Assets (ROA), and Return on Equity (ROE).

Talk about the analysis, first, we analyze the net profit margin and operating profit margin lines from years 2005 – 2011, actually their lines are almost the same. They both have highest ratio in year 2009. Then we analyze Return on Assets, which measures the profit per rupiah of assets, here the highest ROA is also in 2009.

Move to the company’s equity, we analyze Return of Equity (ROE). Here as we see on the graph, the highest ROE is in year 2009. ROE means how much profit PT Mayora Indah, Tbk. generates with the amount of money that shareholders have invested.

 

 

ANALYSIS OF COMPANY STOCK

 

 

 

 

 

 

If we talk about trade performance, there are five types of stocks.  First is “Blue Chips Stocks”, second is “Income Stocks”, third is “Growth Stock”, fourth is “Speculative Stocks”, and fifth is  “Counter Cyclical Stocks”. Every stocks have different definition and Blue Chips Stocks is ordinary company’s stocks who have high reputation, a leader in the same industry, have consistent yield, consistent pay dividend. Blue Chip is a capital market term which refers to the stock of big companies who have consistent yield and liabilities amount is not too many. The term come from casino, blue chips have biggest value.

Well, from the definition, Blue Chips stocks came from high reputation companies, consistent yield, and consistent pay dividend. Sure, Blue Chips stocks always are favorite things in the capital market. Blue Chips stocks are prime product, so there are many people like it. It is a reason why Blue Chips stocks are already easy to resell at capital market, because the demand of Blue Chips stocks is high. However, we must change our mindset about Blue Chips stocks always in high price. That is wrong statement. Blue Chips stocks can change accordance with supply and demand; can increase the price and decrease the price depends on the market.

Mayora shares are shares that profit growth was stable; the company also includes the consumer who is always looking for people to produk2 her food. Obviously this is not a stock nuts stock growing up unclear. With the current price range in the range 10 000's with 400's eps per quarter 3 2010, with about 18 per s, then compared with other similar companies UNVR and then share MYOR still get through 11 000's or even the 12 000's in the near future this.

MYOR is a pioneer in the packaged food business producing a wide variety of food products that are divided into six divisions. The six divisions that include division are biscuit, candy, wafer, coffee, chocolate, and health food.

 

PT CIMB Securities Indonesia retained PT Mayora Indah Tbk (MYOR) out of perform with a target price of USD 4900 (from Rp. 5,200). That, according to securities mentioned in research made after the company cut its profit forecast by 5-6 percent in 2010-2011, as predicted rise in sugar prices.

However, CIMB Securities raised the company's profit forecast 2009 financial year amounted to eight percent, due to strong margins. In addition, short-term catalysts are MYOR strengthening financial reports fourth quarter of 2009 were good, up 10 percent above consensus and if margins remain strong.

Stock Mayora has given considerable discount. Current stock price MYOR 22,300, already discounted 15.84% from the peak two weeks ago at 26,500. With support LEBARAN strong momentum makes RISK in stock MYOR is very LIMITED. It is hard MYOR support at 22,000 [- 1.34% of the current share price MYOR]. Great wall support at 20,000 [-10.31% from the current share price MYOR]. Note: The probability of stock MYOR towards GREATWALL supports 20,000 VERY SMALL. So now it's time MYOR gradual accumulation of shares.

Pioneers venture in packaged foods PT Mayora Indah (MYOR) received a positive recommendation analyst. This is related to an increase in margin and performance expectations of the company are supported by several corporate actions.

In trading on Tuesday (21/7) afternoon session, coded MYOR stock was trading at the level of Rp 1,610, down U.S. $ 30 from last weekend. Although weakened, but the issuer is observed creeping up.

If calculated from the beginning of July, MYOR has climbed 0.6% from the level of USD 1,600 and since early June have increased by 8% from U.S. $ 1490. MYOR has increased by 41.22% from the beginning of the year (January 5, 2009) at the level of USD 1140.

Based on visits made to MYOR, the research team Samuel Securities issuers make it as one of the stock options in 2009. It is based on the company's fundamentals are good enough, regardless of the liquidity in the market. We recommend a buy with a target price of USD 1870 per share, said Christine Salim, analyst at Samuel Securities.

According to Christine, the company indicated first half 2009 sales reached Rp 2.4 trillion. This figure reflects the 50% estimate. While the company expects sales this year to Rp 4.65 trillion, the same as our estimate of Rp. 4.6 trillion, he said.

The Company has additional manufacturing capacity of sizeable capex. With the additional capacity, sales volume is expected to increase 20-25% in 2010. Capex only get Rp 200-250 billion this year.

He further said, the composition of the company's current cost is 55% of raw materials, packaging 20-22%, remaining factory overhead (FOH). According to Christine, the cost of packaging the company's high enough in the cost structure MYOR.

Meanwhile, margin pressure coming from the cost of imported raw materials such as sugar is quite dominant in the production process as well as the depreciation of the rupiah. However, since the fourth quarter of 2008, the margin increases (20-22%). Weakening commodity prices and the appreciation of the rupiah to MYOR positive impact, he added.

The company's performance is also quite satisfactory. In the first quarter of 2009, MYOR posted a net profit rise by 70% to USD 71.2 billion. It was triggered by a net sales increase 41% to Rp 1.19 trillion.

In the first three months of 2009, exports of the company skyrocketed 154% to Rp 182 billion. While domestic sales rose 31% to Rp 1.01 trillion over the same period last year which was only Rp 778 billion.

An analyst at CIMB-GK Securities Indonesia to maintain rating outperforms MYOR stock. MYOR is potentially experiencing rapid growth supported by a diverse product portfolio.

Moreover MYOR products are exported and meet strict requirements from Europe. Company's share of exports has increased from 10% to 15% of total sales. We recommend a buy with a target price of new $ 2150 from Rp. 1,500 per share.

MYOR always sensitive to the purchasing power of your target market and innovate by providing smaller packaging to reduce the rise in raw material prices. MYOR willing decreased margins in order to maintain market share and this strategy has increased market share in the last three years with quality maintained.

Last year, MYOR spent Rp. 500 billion to increase the capacity of the cocoa and coffee, the construction of new factories and warehouses including modern biscuit manufacturing.

Meanwhile, two new production lines to be operated September 2009 makes MYOR has Asia's largest biscuit factory. Our visit to the new biscuit factory, the production process is 3.5 times faster than before.

 

 

 

RELATION BETWEEN COMPANY FINANCIAL CONDITION AND STOCK PRICE

 (In billions rupiah)

INCOME STATEMENT PT. MAYORA INDAH, TBK	2005	2006	2007	2008	2009	2010	2011
Net sales	1706	1918	2828	3908	4777	7224	9454

 

 

 

In that graphics we can know net sales from PT. MAYORA INDAH, TBK increased each year (2005-2011), and we think this factor make some impact in stock price. If we see stock price PT. MAYORA INDAH, TBK at 2011 from January to September 2012 also increased. We can conclude that company financial conditions (especially from net sales history) give an impact to the stock price. We also emphasize that PT. MAYORA INDAH, TBK financial conditions not only one factor that influence the stock price.
CONCLUSION

After we analyzed the relation between financial condition and stock price, we can conclude that PT Mayora Indah Tbk. has a good prospect of future life of company. We can conclude that, because the stock prices always grow from January 2^nd, 2011 until October 19^th, 2012.  The financial condition shows good ratios from every analysis.

 

 

APPENDIX

 

·                     Company Financial Statement

o        Data for 2005-2006

 

o        Data for 2007-2008

o        Data for 2009-2011

 

 

 

·                     Calculation

 

	2005	2006	2007	2008	2009	2010	2011
LIQUIDITY
current ratios	3.54	3.91	1.88	2.19	2.29	2.58	2.22
quick ratios	2.64	2.78	1.40	1.49	1.69	2.10	1.49
cash ratios	0.59	0.27	0.22	0.41	0.42	0.45	0.18
EFFICIENCY
inventory turnover	7.73	6.35	8.25	5.90	7.94	11.07	5.83
day's sales in inventory	47.23	57.49	44.25	61.84	45.98	32.97	62.57
account receivables turnover	5.05	4.27	4.90	5.30	5.42	5.44	5.54
average collection period	72.31	85.39	74.47	68.88	67.31	67.12	65.92
total assets turnover	1.17	1.24	1.49	1.34	1.47	1.64	1.43
fixed assets turnover	2.33	2.60	3.65	3.79	3.72	4.85	4.64
LEVERAGE
debt ratio	0.39	0.38	0.43	0.57	0.50	0.46	0.37
debt to equity ratio	0.63	0.60	0.75	1.35	1.03	0.80	0.62
equity ratio	0.61	0.62	0.57	0.43	0.50	0.54	0.63
equity multiplier	1.63	1.60	1.75	2.35	2.00	1.86	1.58
time interest earned ratio	3.60	5.85	8.26	4.84	5.61	6.73	5.77
PROFITABILITY
gross profit margin	22%	24%	22%	19%	24%	24%	18%
operating profit margin	5%	9%	8%	9%	13%	11%	8%
net profit margin	3%	5%	5%	5%	8%	7%	5%
OIROI	6.40%	11.01%	12.61%	11.82%	18.89%	17.58%	11.48%
return on assets	3%	6%	7%	7%	11%	11%	7%
return on equity	5%	10%	13%	16%	23%	21%	11%
earnings per share	60	122	185	256	485	631	614