Listed Company Analysis – HMSP


Here comes our very first Listed Company Analysis edition which still focusing on Indonesian Market – IHSG. It’s been a whole different ride since the pandemic happened. There’s no certainty and the movement is so fast. Throughout the world we saw the rebound movement of every market with the coming of the new-normal era and changes of how we live as a human. It’s the same as well in Indonesia. Though Indonesia realization of this threat was quiet late, I believe they have their own reasons. Since that the-how people care to each other changes from trying to always stay closer to him/her and now to care means intentionally distancing ourselves to them, more to it quality over quantity is the new-normal we learn and practice. Anyway, season come and go obviously. So more to it, we need to not let our guard down and always be prepared.

Let’s get into the business, today Hopemity will give you some information that we hope this could help you determine your decision and understanding the subject of today. It’s code in IHSG is HMSP, which stands for Hanjaya Mandala Sampoerna Tbk PT. This company founded at 1913 in Surabaya, HMSP is 107 years old. what a grandpa! HMSP may have through a lot of seasons and not to mention several generation too. HMSP is a subsidiary of PT Philip Morris Indonesia with Market Capital about IDR 196 Trillion for HMSP alone.

Key Financial Statistics of HMSP in IDR:

2Q20
Balance Sheet

Cash: 5.109,6 B
Total Asset: 41.904,8 B

Short Term Debt: 12.923,0 B
Long Term Debt: 2.369,6 B
Total Equity: 26.612,3 B


Income Statement

Revenue 44.733,1 B

Gross Profit 9.739,5 B
Operating Profit 5.806,9 B

Net Profit : 4.886,4 B
EBITDA 6.457,8 B
Interest Expense 22,5 B


Earnings Per Share 42.02
Price Earnings Ratio 41.88x
Book Value Per Share 228,79
Price to Book Value 7.69x
Return on Asset 11,66%
Return on Equity 18,36%
Enterprise Value/EBITDA 33,28
Debt/Equity 0.57
Debt/Total Capital 0.36
Debt/EBITDA 2.37
EBITDA/Interest Expense 286.94

Several highlight of HMSP in 2020:

  • Since 19 March 2020, HMSP hit the bottom in 2020 at IDR 1.155/share. Fast forward at 29 May 2020, HMSP already getting back up at IDR 1.940/share, what a strength right?. Looking at today market, HMSP suffers downfall -4.3% to IDR 1.685/share.
  • One of the main selling point of HMSP is cigarettes. First semester of 2020 shown that the revenue from cigarettes down about 27.8% or about 10.9 Billions cigarettes lesser than 2019.
  • Net profit of HMSP in this first semester of 2020 is drop 11.8% year on year (yoy) to IDR 44.73 Trillion which lower IDR 5.99 Trillion of 2019.
  • 27 April 2020 one of the cigarettes factory in Rungkut 2, Surabaya closed temporary due to the Covid-19 outbreak with 2 person casualties. After that employees quarantined and new flow of distribution active. Side-effects, distribution took longer time to reach distributor in the country.

Current Target Price for HMSP:

Credit Suisse Sekuritas

Mirae Asset Sekuritas

HSBC Sekuritas

Goldman Sachs

J.P. Morgan

Morgan Stanley

Danareksa

Mandiri Sekuritas

Nomura

RHB Sekuritas

Trimegah Sekuritas

Korea Investment

Hopemity

Sell Rating

Hold Rating

Hold Rating

Sell Rating

Buy Rating

Sell Rating

Sell Rating

Buy Rating

Neutral Rating

Neutral Rating

Sell Rating

Buy Rating

Buy Rating

1480

1870

1900

1480

1800

1580

1640

2400

1900

1950

1360

2100

1900

62% showing confidence in better and stronger HMSP stocks in 2020. Despite the blockers at the factory site, and the changing of the Indonesian people view of health. HMSP is already devise plans to mitigate the loss of the cigarettes line of product, one of it is IQOS the first nicotine electronics product approved by FDA which in Modified Risk Tobacco Product/MRTP category. Apart from that, consumer product industry is beginning to recover because considered as the basic needs and at the top of spending priority in most household in Indonesia.


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