Arwana Citramulia

Stock Quote Arwana Citramulia - ARNA:

Business Summary

Arwana Citramulia operates four ceramics factories. These are located in Tangerang and Serang (both in West Java), Gresik (East Java), and Indralaya (South Sumatra). At the start of 2014, the company had a total annual production capacity of 49.4 million m². A fifth plant - located in Mojokerto (East Java) - is being developed and should become operational in 2015. Increased production capacity in combination with large domestic demand amid a booming economy (which involves considerable real estate development) will impact positively on the company's sales figures. The opening of the Indralaya plant in 2013 and the Mojokerto plant in 2015 reduce logistics costs caused by the country's notorious lack of quality and quantity of infrastructure.

The company offers a variety of products including Embossed, Marble, Plain Color, Granity, Strata, Rustic, Fancy Wood and Fancy Decorative. The most common sizes are 20 x 20 cm and 30 x 30 cm. However, the current trend indicates popularity of 40 x 40 cm sizes. Subway tiles of 20 x 25 cm and 25 x 40 cm for wall tiles have also been developed by the company, albeit from a small base. In 2014 it was reported that Arwana Citramulia will launch new products targeting Indonesia's middle class-up segment. This involves 60 x 60 cm and 80 x 80 cm tiles imported from Vietnam as well as digital printing technology.

Ceramic consumption in Indonesia is only one m² per capita, which constitutes a very low figure compared to developed countries as well as Indonesia's regional peers.

A problem for companies engaged in Indonesia's ceramics business is the lack of a reliable energy supply (gas) as the ceramics business is energy-intensive. Energy is the largest cost component in the ceramics production process, accounting for 35 percent of total production costs.

Arwana Citramulia's Financial Highlights:

	2014	2015	2016	2017
Net Sales	1,609.8	1,291.9	1,512.0	1,733.0
Gross Profit	522.2	288.1	329.1	404.8
Net Income	259.5	69.8	90.5	120.8
Income from Operations	352.1	102.4	143.0	186.7
Income before Tax	348.7	95.5	123.8	166.2
EBITDA	423.0	176.3	238.4	290.1
Total Assets	1,259.9	1,430.8	1,543.2	1,601.3
Total Liabilities	347.0	536.1	595.1	571.9
Earnings per Share¹	35,4	9,51	12,32	16,46
Cash Dividend per Share¹	12	5	5
Price/Earnings Ratio (x)		52,58	42,21	20,78
Price/Book Value (x)			4,03	2,44

 

	2009	2010	2011	2012	2013
Net Sales	714.1	830.2	922.7	1,113.7	1,417.6
Gross Profit	212.7	264.3	285.8	377.7	500.2
Net Income	63.9	79.0	94.7	156.5	235.2
Income from Operations	128.2	141.6	150.2	224.4	321.8
Income before Tax	90.9	107.7	129.9	212.3	316.8
EBITDA	169.2	189.0	200.5	276.2	379.8
Total Assets	822.7	873.2	831.5	937.4	1,135.2
Total Liabilities	474.4	458.1	348.3	332.6	366.8
Earnings per Share¹	35	43	51,6	85,3	32,1
Cash Dividend per Share¹	7	15	20	40	16

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Arwana Citramulia, Annual Report 2017}

Projection Arwana Citramulia's Future Corporate Earnings:

	2015	2016	2017F	2018F	2019F
Net Revenue
Net Profit
EBITDA
P/E Ratio (x)
P/BV (x)

^{in billion IDR, unless otherwise stated
Source:}