Gema Grahasarana

Stock Quote Gema Grahasarana - GEMA:

Business Summary

Gema Grahasarana has three main business lines:

• Interior contracting services and mechanical electrical installation and maintenance services
• Office and furniture manufacturing
• Trading and distribution of office and residential furniture

Per 2015 Gema Grahasarana owns 10 stores (8 in Jakarta, 1 in Surabaya and 1 in Bali). Its clients include Bank Mandiri, Telkomsel, Atmajaya University, Australian Embassy, IKEA, the Wallstreet Institute among others.

The company’s corporate earnings are expected to weaken in 2015 as demand in Indonesia’s property sector (particularly office space) has declined over the past two years due to global uncertainty as well as political uncertainty in Indonesia (in 2014 the country held legislative and presidential elections making investors hesitant to invest). Weaker revenue is also partly caused by higher operational costs (particularly due to minimum wage growth), hence limiting the company’s profitability.

However, amid the country’s macroeconomic growth (which is expected to accelerate from a five-year low of 5.02 percent y/y in 2014) as well as record high (domestic and foreign) investment, the office business in Indonesia has a favorable outlook.

Gema Grahasarana's Financial Highlights:

	2011	2012	2013	2014	2015F	2016F
Net Sales	518	598	658	632	663	729
Gross Profit	129	154	156	161	169	186
Net Income	29	28	19	18	20	23
Income from Operations	53	59	45	47	55	61
Income before Tax	40	44	33	32	37	42
Total Assets	375	429	378	421	440	484
Total Liabilities	261	287	227	254	260	287
Earnings per Share¹	86	90	58	57	61	71
Cash Dividend per Share¹
P/E Ratio (x)	3.5	4.4	8.1	7.0	5.0	4.3
P/BV (x)	0.8	0.9	1.0	0.8	0.5	0.5

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Pefindo}