## INDR, sales jump!

Current, target price Rp4,750, 9,949 (+109%)

May 15th, 2021

1 minute read

Sales, jump

Cashflow, average close to positive

1 minute read

Sales, jump

- Sales jumped by 42% in the first quarter to 209 million dollars, which is +38% compared to our forecast.
- This is after a -6% decline in the fourth quarter & brings the quarterly average growth to +11%.
- We predict average growth of 4% a quarter in this next 12 months which will bring sales to 235 million dollars by the first quarter of 2022.

Cashflow, average close to positive

- Cashflow was positive 12 million dollars in the first quarter after negative -26 million dollars in the fourth quarter.
- Average quarterly cashflow is now close to positive -2 million dollars.
- We use slightly lower investment spending of -19 million dollars, which with higher sales, gives a positive average quarterly cashflow of 7 million dollars in this next 12 months.

## Sales jump, margins up, cashflow turning positive, very cheap, 6.9% yield, much higher target price...

Balance sheet, stable

Profit, higher

Value , a 6.9% yield

- The net leverage of cash minus total liabilities was -380 million dollars in the first quarter from -350 million dollars in the fourth quarter & -353 million dollars a year ago.
- With our forecast higher cashflow & assuming a dividend payout of -15 million dollars...
- ...net cash will be -365 million dollars in 12 months time.

Profit, higher

- Net profit was higher at 18 million dollars in the first quarter from 4 million dollars in the fourth quarter.
- The cash cost ratio of net profit add back non cash costs minus sales as a percent of sales was down to -88%.
- We use the same -88% costs, to predict a higher next 12 months profit of 76 million dollars.

Value , a 6.9% yield

- INDR cumulative net capital is at 210 million dollars from the last five years.
- At the current market value of 222 million dollars, based on forecasts it’s only 0.93X capital paid, 0.26X sales, 0.26X assets, 0.49X equity, with a 16.9% profitability & a 6.9% yield.
- Our free cashflow forecast is 30 million dollars. At 1.6% with a 0.25X adjustment, gives a 109% higher target price of 9,949 rupiah.