ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

The Week That Was in ASEAN@Smartkarma - Sea Ltd, Jardine Matheson, and Indonesian Cement

Semen Indonesia (SMGR IJ) - Building a Solid Sustainable Future

Semen Indonesia (SMGR IJ) -  A Set Up with New Capacity and Lower Costs

Semen Indonesia Persero Tbk (SMGR IJ) - Fortress Mentality

Semen Indonesia Persero Tbk (SMGR IJ) - Its Not All Bad News After All

Semen Indonesia (SMGR IJ) - Bedding Down with Lafarge Holcim - On the Ground in J-Town

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Semen Indonesia (Gresik) / Equity Bottom-Up

Indonesia's largest cement company <a href="https://www.smartkarma.com/entities/semen-indonesia-persero-tbk" target="_blank" data-smartkarma-citation="entities:11161:1" rel="noopener">Semen Indonesia (SMGR IJ)</a> released a solid set of FY2020 results with a -12.9% decrease in revenues but a +4.3% increase in EBITDA, and a +16.7% increase in net profit with a focus on lowering costs and implementing greater efficiencies.
The company also managed to improve its financial position over 2020 by reducing its overall debt and by refinancing its existing debt at lower interest rates, saving on interest costs and boosting the bottom line. 
<a href="https://www.smartkarma.com/entities/semen-indonesia-persero-tbk" target="_blank" data-smartkarma-citation="entities:11161:1" rel="noopener">Semen Indonesia (Gresik) (SMGR IJ)</a> is the largest cement company in Indonesia with a total capacity of 52.6m tonnes per annum and with more than 50% market share. It has suffered more than its competitors due to the decline in bulk cement demand but at the same time will see a greater benefit from the rebound driven by increased infrastructure spending. 
The stock now trades on 9.7x FY21E EV/EBITDA and 8.4x FY22E EV/EBITDA versus its 5-year average forward EV/EBITDA of 10.72x. EPS is forecast to grow by +20.2% in FY21E and +13.1% in FY22E, suggesting a strong recovery in earnings in line with the overall economy and especially the bulk cement market.

Indonesia's largest cement company Semen Indonesia (SMGR IJ) released a solid set of FY2020 results with a -12.9% decrease in revenues but a +4.3% increase in EBITDA, and a +16.7% increase in net profit with a focus on lowering costs and implementing greater efficiencies.
The company also managed to improve its financial position over 2020 by reducing its overall debt and by refinancing its existing debt at lower interest rates, saving on interest costs and boosting the bottom line. 
Semen Indonesia (Gresik) (SMGR IJ) is the largest cement company in Indonesia with a total capacity of 52.6m tonnes per annum and with more than 50% market share. It has suffered more than its competitors due to the decline in bulk cement demand but at the same time will see a greater benefit from the rebound driven by increased infrastructure spending. 
The stock now trades on 9.7x FY21E EV/EBITDA and 8.4x FY22E EV/EBITDA versus its 5-year average forward EV/EBITDA of 10.72x. EPS is forecast to grow by +20.2% in FY21E and +13.1% in FY22E, suggesting a strong recovery in earnings in line with the overall economy and especially the bulk cement market. 

Semen Indonesia (SMGR IJ) - Catch the Infrastructure Wave?