JAKARTA – Stocks from Sinarmas Group are not too liquid and may be affected by fluctuations in prices quickly. Analysts said that investors were less keen on transacting stocks from the group for the long run due to the fluctuations in price that was not supported by large transaction volume.
Of the 10 stocks owned by Sinarmas Group—based on data from Bloomberg—the stock of PT Indah Kiat Pulp & Paper Tbk (INKP) posted the highest return with 155.88 percent year-to-date. The stock of PT Bumi Serpong Damai Tbk (BSDE) had a return of 64.86 percent, PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM) with a 16.16-percent stock return, PT Dian Swastatika Sentosa Tbk (DSSA) with 14.71 percent stock return, PT Smart Tbk (SMAR) with a 13.74-percent stock return and PT Bank Sinarmas Tbk (BSIM) with a 13.33-percent stock price return.
PT Indoritel Makmur Internasional Tbk (DNET)
The listed retail consumer investment company allots Rp 1.3 trillion to its associate company, PT Indomarco Prismatama, to expand Indomaret outlets in 2014. The expansion will be conducted to boost Indomarco’s revenue growth in 2014. The company plans to open 1,200-1,300 Indomaret outlets, with investments estimated to reach Rp 1 billion per outlet. Funding for the expansion is fully sourced from the company’s cash flow.
PT Ancora Indonesia Resources Tbk (OKAS)
The mining explosive provided and oil and gas drilling services company projects its 2014 revenue to reach US$ 230 million, or up 15 percent from 2013’s revenue projection of US$ 200 million. The revenue hike in 2014 will be supported by the increase in revenues from rig lease services. This business is run by the company’s subsidiary, PT Bormindo Nusantara. The subsidiary has secured a new contract worth US$ 61.5 million from PT Chevron Pacific Indonesia. The company also has carried over contracts worth US$ 121 million from last year.
PT Energi Mega Persada Tbk (ENRG)
The listed oil and gas company projects its loan interest rates for 2014 to drop US$ 26 million per year. Imam P. Agustino, President Director of Energi Mega, said the paying off of the previous debt through a syndicated loan worth US$ 203 million would reduce the company’s interest expense. The syndicated loan facility secured by Energi Mega has a five-year tenor with LIBOR+6 percent interest rate per year, which is lower than the interest rate from the company’s previous debt.
PT Logindo Samudramakmur Tbk (LEAD)
The listed offshore activity support company allots US$ 80 million for its 2014 capex, or unchanged from 2013’s capex. The company will still focus its 2014 capex for the purchase of large capacity offshore vessels that are estimated to cost US$ 18 million to US$ 32 million per vessel. The company aims to purchase vessels for deep sea operation.
PT Kertas Basuki Rachmat Indonesia Tbk (KBRI)
The listed paper company’s sales as of September of 2013 sank 70 percent YOY to Rp 10.46 billion from Rp 34.86 billion. The sales drop caused the company to obtain net loss of Rp 13.32 billion from net profit of Rp 47.45 billion in the same period in 2012. The company’s production from its paper machine only reached 5,044 tons as of September of 2013, or 30 percent lower than early 2013’s projection of 7,238 tons.