## ANJT, sales jump

Current, target price Rp735, 1,880 (+156%)

May 6th , 2021

1 minute read

Sales, jumped

Cashflow, finally positive

1 minute read

Sales, jumped

- Sales jumped by 28% in the first quarter to 59 million dollars, which is a whopping +31% compared to our forecast.
- This is after 0% growth in the fourth quarter & brings the quarterly average growth to 13%.
- We predict average growth of 6% a quarter in this next 12 months which will bring sales to 73 million dollars by the first quarter of 2022.

Cashflow, finally positive

- Cashflow finally turned positive 7 million dollars in the first quarter after negative -6 million dollars in the fourth quarter.
- Average quarterly cashflow is now also approaching positive at -2 million dollars.
- We use flat investment spending of -9 million dollars, which with higher sales, gives a positive average quarterly cashflow of 4 million dollars in this next 12 months.

## Sales jump & Cashflow turns positive, expecting better margins & positive avenge Cashflow, only 0.27X assets, shares to triple...

Balance sheet, lower leverage

Profit, to 4X

Value, only 0.27X assets

- With positive cashflow, the net leverage of cash minus total liabilities was -217 million dollars in the first quarter from -225 million dollars in the fourth quarter & -195 million dollars a year ago.
- With our forecast higher cashflow & assuming a dividend payout of -3 million dollars...
- ...net cash will improve to -202 million dollars in 12 months time.

Profit, to 4X

- Net profit was higher at 3 million dollars in the first quarter from 1 million dollars in the fourth quarter...
- ... despite the cash cost ratio of net profit add back non cash costs minus sales as a percent of sales increasing to -84%.
- We use lower -81% costs, to predict a 4X higher next 12 months profit of 29 million dollars.

Value, only 0.27X assets

- ANJT cumulative net capital is at -165 million dollars from the last six years.
- At the current market value of 174 million dollars, based on forecasts it’s only 0.60X sales, 0.27X assets, 0.42X equity, with a 7% profitability & a 1.6% yield.
- Our free cashflow forecast increases to 17.8 million dollars. At 1.6% with a 0.5X adjustment, gives a 156% higher target price of 1,880 rupiah.