Semen Baturaja

Stock Quote Semen Baturaja - SMBR:

Business Summary

In 1991 the government of Indonesia took over all shares of Semen Baturaja (previously the central government already had a majority stake in the company). In 2013, nearly 24 percent of the company's shares were offered to the public through an initial public offering (IPO) on the Indonesia Stock Exchange. Funds generated through the IPO were used for the construction of the Baturaja II plant (with an annual production capacity of 1.85 million tons of cement).

Read Analysis: Overview and Analysis of Indonesia's Cement Industry

The major markets of Semen Baturaja are located close to the production center in South Sumatra and Lampung. After Java, Sumatra is the second-largest Indonesian island in terms of cement demand.

Strengths of Semen Baturaja:

• Its plants are located close to its markets in Sumatra
• Sumatra is the second-largest cement consumer of Indonesia (after Java)
• Good reputation and more than 40 years of experience
• Low use of leverage
• The Indonesian government is committed to enhance the country's infrastructure development
• Per capita cement production is still low in Indonesia

Weaknesses of Semen Baturaja:

• Its distribution area is limited (mainly Lampung and South Sumatra)
• Due to influx of new companies and expansion of existing companies, Indonesia has a cement oversupply. The oversupply and fierce competition lead to lower profit margins
• In 2015 the government ordered state-owned cement producers to lower cement prices

Semen Baturaja's Operational Highlights:

	2012	2013	2014	2015	2016
Cement Production (in tons)	1,234,163	1,287,028	1,264,604	1,537,100	1,627,521
Cement Sales Volume (in tons)	1,233,933	1,262,386	1,262,707	1,538,048	1,631,864

^{Source: Semen Baturaja Annual Report 2016}

Semen Baturaja's Financial Highlights:

	2011	2012	2013	2014	2015	2016
Net Sales	1,050.3	1,097.7	1,168.6	1,214.9	1,461.2	1,522.8
Gross Profit	428.5	489.8	462.2	379.2	493.6	511.0
Net Income	251.6	298.5	312.2	336.0	354.2	259.1
Income from Operations	307.2	367.1	329.2	253.3	323.3	328.4
EBITDA	354.0	417.4	395.9	341.9	414.2	419.5
Current Assets	612.1	667.7	2,106.6	2,335.8	1,938.6	838.2
Current Liabilities	146.1	171.4	193.6	179.7	234.7	292.2
Earnings per Share¹			37	34	36	26
Dividend per Share¹			7,9	8,3	9,0
P/E Ratio (x)			10.4	11.5	13.1
P/BV (x)			1.3	1.3	1.6

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Sources: Semen Baturaja Annual Report 2016}