Erajaya Swasembada

Stock Quote Erajaya Swasembada - ERAA:

Business Summary

The Erajaya Group has grown into a nationwide distribution network made up of around 100 distribution points, 700 stores and partnerships with more than 16,000 third-party re-sellers. It is a market leader for the distribution of mobile communication products in Indonesia.

Erajaya is Indonesia's leading distributor and retailer of smartphones, tablets, and android devices. Its brands include Xiaomi, Nokia, Apple, Samsung, Blackberry, Acer, Dell, HTC, Motorola, Sony, LG, Huawei and Venera.

Initially, Erajaya's business line only covered Nokia phones. However, when Nokia sales fell sharply in 2009 due to increased competition from smartphones, the company decided to engage in an aggressive expansion program. This program included the take-over of PT Teletama Artha Mandiri (TAM), an Indonesian distributor of Blackberry handsets, an initial public offering (IPO) on the Indonesia Stock Exchange, through which it raised IDR 920 billion, and by adding more brands on the company's distribution line. The company has also steadily expanded its number of distribution centers and outlets. In 2012, it acquired ibox, an Apple reseller, training center and service provider for USD $18 million.

Financial Highlights Erajaya Swasembada:

	2015	2016	2017
Net Sales	20,007.6	20,547.1
Gross Profit	1,505.6	1,792.3
Net Income	226.0	263.8
Income from Operations	477.5	533.6
Income before Tax	320.4	383.5
EBITDA	615.0	708.0
Total Assets	7,800.3	7,424.6
Total Liabilities	4,594.9	4,015.4
Earnings per Share¹	78	91
Cash Dividend per Share¹
Price-to-Earnings Ratio (x)	6.99	6.59

 

	2010	2011	2012	2013	2014
Net Sales	4,638.5	6,899.5	12,883.6	12,727.3	14,451.4
Gross Profit	507.8	748.8	1,145.7	1,169.2	1,289.2
Net Income	217.7	255.4	432.9	348.4	212.3
Income from Operations	293.6	389.8	625.8	546.4	478.2
Income before Tax	296.7	357.8	583.9	456.9	296.9
EBITDA		419.5	690.0	642.9	602.1
Total Assets	1,285.0	2,929.5	3,887.4	5,001.6	6,121.8
Total Liabilities	268.1	782.1	1,308.4	2,248.3	3,112.4
Earnings per Share¹	110	126	149	120	73
Cash Dividend per Share¹			60	0	20

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Erajaya Swasembada, Financial Report 2016}

Projection Erajaya Swasembada's Future Corporate Earnings:

	2015	2016	2017F	2018F
Net Revenue	20,008	20,547	23,187	25,546
Net Profit	230	262	303	327
P/BV (x)	0.7	0.6	0.6	0.6
P/E Ratio (x)	9.5	8.3	7.2	6.7

^{in billion IDR, unless otherwise stated
Source: Ciptadana Sekuritas (19/02/2018)}