Listed Company Analysis – AALI


Indonesia is an agrarian country. Agrarian means a society, or agricultural society, is any community whose economy is based on producing and maintaining crops and farmland. … They have been the most common form of socio-economic organization for most of recorded human history (source from wikipedia.org). The key in this is crops and farmland. Indonesia has 17.504 islands, the best in the world in terms of quantity. Indonesia’s landscape is 1.905 Million KM2. Land that is rich and prospers with natural resources, by managing this that will make a big difference for the economy and the people.

Company Information

PT Astra Agro Lestari Tbk (AALI) is engaged in the operation of oil palm, rubber and cocoa plantations, general trading, manufacturing, transportations, consultation, and related services. AALI is a subsidiary of PT Astra International Tbk (ASII). The president of the board of commissioner today is Chiew Sin Cheok, and the President Director is Santosa.

Who are they? Chiew Sin Cheok is a Malaysian nationality who also the previous Group Finance Director of Jardine Cycle & Carriage Limited (the holding company of ASII). He took a degree in the London School of Economics and Political Science (United Kingdom) and then continue to Imperial College of Science and Technology (United Kingdom) to earn the Master of Management Science. 25 years later, he decided to take an Advanced Management Programme at Harvard Business School (United States of America). Chiew start joined to Jardine’s company in 1993 as Corporate Finance Manager of Jardine Pacific Limited (Hongkong) until today.

Santosa, on the other hand, is from Mojokerto Indonesia. He took a degree in the Faculty of Mathematics and Natural Sciences at Universitas Gadjah Mada Yogyakarta. He begins to join Astra’s Company in 2001 as a Director Sales & Marketing PT Astra CMG Life then keep going up until now as the President Director of Astra Agro Lestari Tbk. Santosa got awards as the Most Admire CEO in 2019 by Warta Ekonomi due to his vision in leading the AALI to develop the sustainable oil palm industries and help the people as well.

AALI IPO-ed on 09 December 1997 with initial price at IDR 1.550/share. The sole-underwriter is PT ABN Amro Asia Securities Indonesia.

Key Financial Statistics

Pictures provided.

AALI Financial Statement of Series 61
AALI Financial Ratios of Series 61

Highlights of 2020

  • Quarter 2 of 2020, net profit AALI increased 796% YoY basis to IDR 391.90 Bio. The result of an efficiency operational costs about 2.5% from IDR 7.97 T to IDR 7.77 T this year.
  • The lowest point in 2020 at IDR 4290/share and today already get back up to IDR 10.275/share. 139% rebound!
  • As long as the earth is spinning and keep producing, AALI will keep growing.

Target Price

MacquarieBuy Rating10.500
Mirae Asset Daewoo Co., LtdBuy Rating15.350
Ciptadana SekuritasBuy Rating18.500
DBS BankHold Rating10.000
RHB ResearchBuy Rating13.700
UOB Kay HianHold Rating9.470
Credit SuisseBuy Rating7.640
Samuel SekuritasBuy Rating11.100
DanareksaBuy Rating12.500
HopemityBuy Rating13.500
AALI Target Price 2020

Closing

AALI actively improves its research and development, and it has a lot of subsidiaries to smooth its chain of process. AALI is a leader in Indonesia’s Crude Palm Oil. This company could be an option for your portfolio if you want to have an agriculture sector. The prospect is good, despite the pandemic, it’s business keep growing.

IDR 1.027.500 / lot is worth having for investing purposes. Good luck, don’t put your eggs on one basket, diversified it.


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