Friday, September 23, 2011

SMR Utama & Adisaputro Family


SMR Utama & Adisaputro Family

Indonesia Stock Exchange welcomes another newboy recently, PT SMR Utama Tbk (SMRU), the only manganese miner in the stock market. The company targets to raise Rp300 billion, mostly to support its production in East Nusa Tenggara. Fundamentals?

The company floats 500 million new shares valued at Rp600 to public investors with PT Andalan Artha Advisindo Sekuritas will act as underwriter for the IPO. The number represents 33.33% shareholding interest in SMRU. Other owners of the company are PT Dana Hayati Wisesa (13.33%) and PT Alam Abadi Resources (53.33%).

What the company will do with the Rp300 billion?
1.    Rp25.55 billion (8.96%) to add its heavy machines fleet in Q2 2012: six Caterpillar 320D excavators, three Komatsu bulldozers, five Caterpillar 950 wheelloaders, and three Komatsu forklifts. Previously, the company has 16 excavators and seven bulldozers.
2.    Rp25 billion (8.77%) to add transportation facilities in Q3 2012.
3.    Rp25 billion (8.77%) to develop road on its mining area at Supul Village, Kuatnana District, East Nusa Tenggara in Q4 2012.
4.    Rp20 billion (7.02%) to establish stockpile and crushing & washing facilities in Q2 2012.
5.    Rp10 billion (3.51%) to develop its site office in Q4 2012.
6.    Rp8 billion (2.81%) for exploration activities in Q4 2012.
7.    Rp54 billion (18.95%) for wage and other operational payments.
8.    Rp82.45 billion (28.93%) for loan payments.

SMRU has total Rp39 billion and US$6 million of credit facilities from PT Bank Windu Kentjana Internasional Tbk, PT Danpac Finance, and PT Bank Pan Indonesia Tbk where mostly used for working capital and other investments.

The company has three subsidiaries:
PT Soe Makmur Resources (SMR) is the main subsidiary of SMRU, having a 3,749.56ha of manganese concession in South Timor Regency. According to Ministry of Energy & Mineral Resources, this company has 4,550ha of clean & clear mining concession within the area, the second largest manganese concession in the province.

Let’s see its resource. The company claimed it produced manganese rocks which consists Mn > 47%. Institute of Technology Bandung reported the company has total 2.73 million tons of reserves from 17% of its area concession in February 2011, but later SMRU claimed the area has 3.77 million tons of reserves. The area is reportedly has an extreme topography and geometric landscape.

SMR started its production in 2010 where it produced 12,000 tons per month or approximately 144,000 tons per annum. However, SMR claimed it has capacity production of 30,000 tons per month. Well, Manganese price presently stood at US$3,775 per ton, jumped 16.2% year to date. You can calculate how big their revenues are.

The shareholding structure of this company are SMRU (99.68%), PT Alam Abadi Resources (0.22%), and its CEO Dodi Hendra Wijaya  (0.10%).

PT Adikarsa Alam Resources and PT Transentra Nusantara both work in transportation and mining industry respectively. However, both companies have not yet commenced its operational yet so far.

Some might be wonder, how their financial performance is. Let’s take a brief on the following table.
SMRU
31-Dec-10
31-Dec-09
Change(%)
Assets
194
156
23.8
  Current
12
6
111.8
  Non Current
182
151
20.5
Liabilities
124
168
-26.6
  Current
115
12
865.1
  Long Term
9
157
-94.3
Equity
70
-12
-681.2
  Shares Volume
100,000
1,200
8,233.3

2010
2009
Change
Revenues
24
10
134.0
   Gross Profit
-5
-5
0.1
   Operating Profit
-21
-13
59.1
   Net Profit
-17
-11
58.5
   Comprehensive Net Profit
-17
-11
58.5
EPS
-3,351
-100
3,251.0
in billion Rp, EPS in Rp, shares volume in exact number

Property of hatmanbintang.blogspot.com



Seems like this company still suffer huge loss following high cost of production. In the first quarter, the company suffers Rp6.51 billion of net loss with Rp6.96 billion of revenues and Rp2.56 billion of operating loss. If this continues, the company might have bigger net loss compared to 2010.

At the scheme, SMRU’s shares priced at Rp1 million per share, making the company has market capitalization of Rp100 billion, too small for a mining company. However, SMRU’s market cap will boosted to Rp900 billion as if the Rp600 IPO share launched.

SMRU
31-Mar-11
Stock & Market Cap
Value
Assets
194
Shares Volume
1,500
  Current
23
IPO Price (Rp)
600
  Non Current
171
Mkt Cap (billion Rp)
900
Liabilities
131
Mkt Cap/Assets (X)
4.6
  Current
38
PER (X)
0.0
  Long Term
93
PBV (X)
14.2
Equity
63


  Shares Volume
0
Ratios (%)
1H11


DER
206.3
Revenues
7
Current Ratio
60.2
   Gross Profit
-3
ROA
-6.7
   Operating Profit
-8
ROE
-20.5
   Net Profit
-7
OPM
-117.0
   Comprehensive Net Profit
-7
NPM
-93.5
EPS
-65,105


in billion Rp, EPS in Rp, shares volume in million number

Property of hatmanbintang.blogspot.com



Who are people behind the company? This company is owned by Adisaputro Family and apparently is part of Bintang Djaja Group. Its head is Djajus Adisaputro, SMRU’s President Commissioner and also the owner of PT Bintang Djaja, PT Muara Perdana, and PT Sarana Lindung Upaya. He was also the founder of Muara Dana Cooperation, an NGO based in financial agency to assist rural people. His son, Adi Wibowo Adisaputro, served as SMRU’s Director.

Other people within the company are Noke Kiroyan (Siemens AG, Rio Tinto, Newmont), Dwijawanti Widiatmadja (Seems to be Djajus Adisaputro’s wife), Jokky Wahyoedi Hidayat (Batik Keris Group, Bukit Darmo Property, HD Capital, Kanindo Group), Dodi Hendra Wijaya (Director SMRU), and Djoko Purwanto.

Honestly, I’m so excited with another miner listed on IDX, especially for an ‘unusual’ miner. But looking at the fundamental data, will it become IDX’s main player? Keep Watching!

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1 comment:

  1. You are talking about the price of pure refined manganese. The approximate price they would be getting for ore of this quality would be USD 250 - 290, not USD 3,775

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