Hexindo Adiperkasa

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#21
I took a look at Total Bangun and cannot believe how this construction service business does not require much in working capital, and spits out most of its earnings as dividends.

And yet its share price has been going lower over the years.

Not only are some of these companies cheap, but so is IDR.
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#21
I took a look at Total Bangun and cannot believe how this construction service business does not require much in working capital, and spits out most of its earnings as dividends.

And yet its share price has been going lower over the years.

Not only are some of these companies cheap, but so is IDR.
Reply
#22
(25-03-2020, 08:50 PM)karlmarx Wrote: I took a look at Total Bangun and cannot believe how this construction service business does not require much in working capital, and spits out most of its earnings as dividends.

And yet its share price has been going lower over the years.

Not only are some of these companies cheap, but so is IDR.


Its biz model is more like Boustead Project, main contractor with alot of subcons.
Providing Project Management & engineer services.

Their main problem is in capital allocation.
Their management are capable engineers and good executor.
Capable allocation? Quite bad! Otherwise buying back their shares now is by-and-large, their best option now.
They also spent $ in financial assets which are quite stupid as well.

They also own some lands & resort units that I suspect were given to them as exchange of bad receivables.
Which until now awfully idled!

From my holding, I am more confident with Prodia business albeit not as cheap.

Hardcore deep value investors may want to look at listed Property companies in Indo.
They have been depressed for years.
Some of the notable rather interesting companies are:
$PWON, $JRPT, $RDTX, $BSDE, $PJAA.
I particularly interested in the first 3 which are net cash or nearly net cash.


Sent from my iPhone using Tapatalk
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".
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#22
(25-03-2020, 08:50 PM)karlmarx Wrote: I took a look at Total Bangun and cannot believe how this construction service business does not require much in working capital, and spits out most of its earnings as dividends.

And yet its share price has been going lower over the years.

Not only are some of these companies cheap, but so is IDR.


Its biz model is more like Boustead Project, main contractor with alot of subcons.
Providing Project Management & engineer services.

Their main problem is in capital allocation.
Their management are capable engineers and good executor.
Capable allocation? Quite bad! Otherwise buying back their shares now is by-and-large, their best option now.
They also spent $ in financial assets which are quite stupid as well.

They also own some lands & resort units that I suspect were given to them as exchange of bad receivables.
Which until now awfully idled!

From my holding, I am more confident with Prodia business albeit not as cheap.

Hardcore deep value investors may want to look at listed Property companies in Indo.
They have been depressed for years.
Some of the notable rather interesting companies are:
$PWON, $JRPT, $RDTX, $BSDE, $PJAA.
I particularly interested in the first 3 which are net cash or nearly net cash.


Sent from my iPhone using Tapatalk
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".
Reply
#23
In United Tractor's latest 3M operation update, Hexindo's Hitachi captured a larger market share from United Tractor's Komatsu.

For the period 3M20, Hitachi has 29% while Komatsu has 33%.
For the period 3M19, Hitachi has 20% while Komatsu has 38%.

UT 3M20 operational update: http://www.unitedtractors.com/sites/defa...202020.pdf

UT 3M19 operational update:
http://www.unitedtractors.com/sites/defa...202019.pdf

United Tractors' sales has traditionally been over-represented by the mining industry. The top two mining contractors in Indonesia -- PAMA (itself) and BUMA (Delta Dunia) -- primarily use Komatsu equipment. A recession in the mining industry thus hurts UT more.

Hexindo has been mindful of maintainng even exposure to each industry. And while its sales to mining and palm oil sectors will also face lower demand, the demand from forestry (for production of paper and pulp products), and construction may be slightly more resilient.

From UT's market data, it looks like Hexindo will fall short of its 4Q19 sales projection. The impact on projected FY19 earnings should be small, as gross margins on equipment sales are low.

Hexindo FY19 projections:
https://www.hexindo-tbk.co.id/wp-content...d_2019.pdf

Even so, it is likely that FY20 will be a poor year for Hexindo's sales. But if the company can grow its market share during this difficult period, it may enjoy a larger recurring base of service and maintenance revenue when the heavy equipment market recovers over the long-term.
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#23
In United Tractor's latest 3M operation update, Hexindo's Hitachi captured a larger market share from United Tractor's Komatsu.

For the period 3M20, Hitachi has 29% while Komatsu has 33%.
For the period 3M19, Hitachi has 20% while Komatsu has 38%.

UT 3M20 operational update: http://www.unitedtractors.com/sites/defa...202020.pdf

UT 3M19 operational update:
http://www.unitedtractors.com/sites/defa...202019.pdf

United Tractors' sales has traditionally been over-represented by the mining industry. The top two mining contractors in Indonesia -- PAMA (itself) and BUMA (Delta Dunia) -- primarily use Komatsu equipment. A recession in the mining industry thus hurts UT more.

Hexindo has been mindful of maintainng even exposure to each industry. And while its sales to mining and palm oil sectors will also face lower demand, the demand from forestry (for production of paper and pulp products), and construction may be slightly more resilient.

From UT's market data, it looks like Hexindo will fall short of its 4Q19 sales projection. The impact on projected FY19 earnings should be small, as gross margins on equipment sales are low.

Hexindo FY19 projections:
https://www.hexindo-tbk.co.id/wp-content...d_2019.pdf

Even so, it is likely that FY20 will be a poor year for Hexindo's sales. But if the company can grow its market share during this difficult period, it may enjoy a larger recurring base of service and maintenance revenue when the heavy equipment market recovers over the long-term.
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