Semen Indonesia
PT Semen Indonesia Tbk, previously known as Semen Gresik, is the largest cement producer of Indonesia. The company has cement plants on the islands of Java, Sumatra and Sulawesi which are all supported by a distribution network that reaches the whole country. It holds the largest market share (around 40 percent) in terms of domestic cement sales in Indonesia. Semen Indonesia was the first state-owned enterprise that went public on the Jakarta Stock Exchange and Surabaya Stock Exchange (both merged to become the Indonesia Stock Exchange in 2007).
Profile
Industry Sector | Basic Industry and Chemicals |
Industry Sub Sector | Cement |
Established | 25 March 1953 |
Listed | 8 July 1991 |
Listed Company Code | SMGR |
Listed Shares | 5,931,520,000 |
Dividend | Yes |
Major Shareholders (>5%) | Government of Indonesia (51.01%) |
Key Subsidiaries | Semen Gresik Semen Padang Semen Tonasa Kawasan Industri Gresik Industri Kemasan Semen Gresik United Tractors Semen Gresik |
Stock Quote Semen Indonesia - SMGR:
Business Summary
Although Semen Indonesia's core business is the production (and distribution) of cement, the company is also involved in:
• Industrial real estate
• Cement bags
• Mining
The majority of the company's cement production stems from Semen Gresik (East Java), Semen Padang (West Sumatra) and Semen Tonasa (South Sulawesi).
The company's cement production, production capacity and sales volume have risen steadily in recent years - reaching record highs - due to robust domestic cement demand in combination with capital expenditure to build new plants. These numbers are predicted to increase further in the near future.
Semen Indonesia's Operational Highlights:
2014 | 2015 | 2016 | 2017 | 2018 | |
Cement Production in million tons |
28.3 | 28.5 | 28.3 | 30.8 | |
Production Capacity in million tons |
31.8 | 31.8 | 31.8 | 33.5 | |
Domestic Sales in million tons |
26.2 | 26.0 | 25.7 | 27.1 |
2009 | 2010 | 2011 | 2012 | 2013 | |
Cement Production in million tons |
18.1 | 18.2 | 19.8 | 22.8 | 26.9 |
Production Capacity in million tons |
19.0 | 19.0 | 20.2 | 28.5 | 30.0 |
Domestic Sales in million tons |
18.4 | 17.9 | 19.7 | 21.8 | 25.4 |
Source: Semen Indonesia Annual Report 2017
An example of Semen Indonesia's intention to expand its business is the company's acquisition of a majority stake in Vietnam’s Thang Long Cement (worth USD $157 million) in December 2012. This move shows that the company is keen to look across borders to tap new markets and strengthen its production capacity. At mid-2013, Semen Indonesia is seeking to acquire a cement company in Myanmar.
Although Semen Gresik is clear market leader in Indonesia's cement industry, its market share has fallen a couple of percentage points in recent years because of increased production of competitors. To reverse this trend, the company has invested in the construction of two new cement plants in Rembang (Central Java) and Padang (West Sumatra), each with a production capacity of three million tons. The factory in Padang should become operational in late 2015, while the factory in Rembang is expected to start operations in late 2016. Moreover, the company is busy preparing the establishment of four new cement mills; two in Tuban (East Java) and two in Dumai (Riau, Sumatra).
Semen Indonesia's Financial Highlights:
2015 | 2016 | 2017 | 2018 | |
Net Revenue | 26,948.0 | 26,134.3 | 27,813.7 | |
Gross Profit | 10,646.0 | 9,855.9 | 7,959.6 | |
Net Income | 4,521.5 | 4,521.6 | 2,014.0 | |
EBITDA | 7,473.5 | 6,962.9 | 5,397.0 | |
Total Assets | 38,153.1 | 44,226.9 | 48,963.5 | |
Total Liabilities | 10,712.3 | 13,652.5 | 18,524.4 | |
Earnings per Share¹ |
762 | 762 | 340 | |
Dividend per Share¹ |
2010 | 2011 | 2012 | 2013 | 2014 | |
Net Revenue | 14,344.2 | 16,378.8 | 19,598.0 | 24,501.2 | 26,987.0 |
Gross Profit | 7,486.9 | 9,297.6 | 10,944.1 | 11,578.9 | |
Net Income | 3,633.2 | 3,925.4 | 4,848.0 | 5,370.2 | 5,559.9 |
EBITDA | 4,969.5 | 5,402.0 | 6,869.1 | 8,099.0 | 8,491.9 |
Total Assets | 15,563.0 | 19,661.6 | 26,579.1 | 30,792.9 | 34,331.7 |
Total Liabilities | 3,423.2 | 5,046.5 | 8,414.2 | 8,988.9 | 9,326.7 |
Earnings per Share¹ |
613 | 662 | 817 | 905 | 937 |
Dividend per Share¹ |
306.26 | 330.89 | 367.74 | 407.42 | 375.34 |
in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: Semen Indonesia Annual Report 2017
Future Prospects of the Indonesian Cement Sector
Indonesia's cement sector has shown a steep increase in domestic cement production and consumption. This trend is estimated to continue for a number of reasons:
• Indonesia's current low per capita cement consumption
• The government's intention to ramp up much-needed infrastructure development
• An expanding middle class that gives rise to to new housing and real estate development
• Solid national economic conditions with annual GDP growth of plus 5 percent
What are issues that negatively affect the Indonesian cement sector?
• Infrastructure development is not reaching its full potential due to red tape, a weak legal system, and a lack of public and private funds
• International financial turmoil (USA and Europe) can influence Indonesia's economic growth, thus affecting domestic cement demand
• Recent central bank monetary tightening led to a cooling property market
Semen Indonesia, Indocement Tunggal Prakarsa and Holcim Indonesia dominate Indonesia's cement sector. Click here for a detailed analysis of Indonesia's cement industry and market.
Projection Future Corporate Earnings Semen Indonesia:
2018 | 2019 | 2020F | 2021F | 2022F | |
Revenue | 30,688.0 | 40,368.0 | 36,321.0 | 37,994.0 | 41,943.0 |
Net Income | 3,079.0 | 2,392.0 | 1,627.0 | 1,777.0 | 5,302.0 |
EBITDA |
6,399.0 | 8,529.0 | 8,016.0 | 8,796.0 | 9,997.0 |
P/E Ratio (x) |
17.7 | 22.8 | 33.4 | 30.6 | 14.5 |
P/BV (x) | 1.7 | 1.7 | 1.6 | 1.6 | 1.8 |
in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Danareksa Sekuritas (05.10.2020)
Location
Contact Details
Semen Gresik Building
Jalan Veteran, Gresik,
Surabaya - 61122
Phone: +62 31 398 1731 3
Fax: +62 31 398 3209
Email: corp.sec@sg.sggrp.com
www.semenindonesia.com