Steel Pipe Industry of Indonesia

Stock Quote Steel Pipe Industry of Indonesia - ISSP:

Business Summary

The company services a wide variety of industries, including construction, infrastructure, utility, oil & gas, furniture, and automotive. The company’s export markets include Japan, Singapore, Taiwan, USA and Australia. However, it is mainly focused on supplying the domestic market.

The company's product portfolio comprises a wide variety of customized, standard carbon (Spindo) and stainless steel (Tetsura) pipes. Steel Pipe Industry of Indonesia also provides related services which include galvanization, shearing, slitting, and quality control tests. It has six production facilities.

The company owns six production facilities encompassing 30 production lines. In 2013, it held an initial public offering (IPO) on the Indonesia Stock Exchange to secure funds to engage in an aggressive production expansion plan. In 2014, production capacity reached over 40,000 MT of steel pipes per month. The company aims to have doubled its production capacity by 2016-2017.

Steel Pipe Industry of Indonesia has long experience in Indonesia’s steel pipe industry, has the country’s largest steel pipe production capacity, a wide variety of steel products, and certification that it complies with international and domestic quality standards. However, the company needs to import many raw materials making it vulnerable to currency volatility.

Steel Pipe Industry of Indonesia's Financial Highlights:

	2011	2012	2013	2014	2015
Net Sales	2,577	3,093	3,534	3,368	3,584
Gross Profit	396	401	605	564	773
EBITDA	336	350	468	531
Net Income	111	111	204	215	159
Income before Tax	146	149	251	262
Total Assets	2,643	3,283	4,394	5,443	5,448
Total Liabilities	2,099	2,514	2,459	3,138	2,895
Earnings per Share¹	129	26	28	30	22
P/E Ratio (x)			5.1	8.0	8.5
P/BV (x)			0.5	0.7	0.5

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Sources: Spindo Annual Report & Pefindo}

Future Forecast Steel Pipe Industry of Indonesia's Financial Highlights:

	2014	2015	2016F	2017F	2018F
Net Sales	3,368	3,583	4,111	4,702	5,325
Operating Profit	421	434	629	600	545
Net Income	215	159	312	268	194
P/E (x)	8.0	8.5	8.6	9.9	13.7
P/BV (x)	0.7	0.5	1.0	0.8	0.8

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Recapital Securities (28/07/2016)}