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DSNG, at 0.37X assets
Current, target price 500, 626 (+25%)
August 26th, 2021
1 minute read
Sales up slightly
Costs down slightly
1 minute read
Sales up slightly
- Sales grew by 1% in the second quarter to 1,661 billion rupiah which is far below our forecast 2,046 billion rupiah.
- This brings the average quarterly growth to 10%.
- We predict average growth of 7% in this next 12 months to bring sales to 2,144 billion rupiah in the second quarter 2022.
Costs down slightly
- The cash cost ratio of net profit add non cash costs minus sales as a percent of sales was at -84% in the second quarter & profit increased to 114 billion rupiah.
- Average quarterly costs are now at -84%.
- We use the same -84% costs to predict a 190 billion rupiah profit in the second quarter of 2022.
Cashflow low on working capital
Balance sheet, higher leverage
Value, at 0.37X assets
- Cashflow was 49 billion rupiah with higher investment spending of -173 billion rupiah in the second quarter.
- Average quarterly Cashflow is now at 100 billion rupiah.
- We use the same -173 billion rupiah investment spending which with higher sales gives a 166 billion rupiah cashflow in the second quarter 2022.
Balance sheet, higher leverage
- Cash declined from 511 to 393 billion rupiah in the second quarter.
- Liabilities declined from 7,762 to 7,738 billion rupiah so net cash worsened from -7,251 to -7,345 billion rupiah.
- With our forecast cashflow & a -66 billion rupiah equity payout, net cash will be -6,849 billion rupiah in 12 months time.
Value, at 0.37X assets
- DSNG capital from the last seven years improved to -934 billion rupiah in the second quarter.
- At the current market value of 5,229 billion rupiah, based on our forecasts, it’s at 0.66X sales & 0.37X assets with a 1% yield.
- Our free cashflow forecast is 562 billion rupiah. At 13X, this gives a 40% higher target price of 698 rupiah.
