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PWON, at 0.77X assets
Current, target price 454, 703 (+55%)
August 30th, 2021
1 minute read
Sales up +20% again
Costs, margins returning
1 minute read
Sales up +20% again
- Sales increased by another 20% in the second quarter to 1,344 billion rupiah which is above our forecast 1,228 billion rupiah.
- This brings the average quarterly growth to 65%.
- We predict average growth of 6% in this next 12 months to bring sales to 1,660 billion rupiah in the second quarter 2022.
Costs, margins returning
- The cash cost ratio of net profit add non cash costs minus sales as a percent of sales was at -67% in the second quarter & profit was 272 billion rupiah.
- Average quarterly costs are now at -58%.
- We use lower -55% costs to predict a 585 billion rupiah profit in the second quarter of 2022.
Cashflow jumped
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Balance sheet, lower leverage
Value, at 0.77X assets
- Cashflow jumped to 640 billion rupiah with investment spending of -96 billion rupiah in the second quarter.
- Average quarterly Cashflow doubled to 348 billion rupiah.
- We use the same -96 billion rupiah investment spending which with higher sales gives a 562 billion rupiah cashflow in the second quarter of 2022.
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Balance sheet, lower leverage
- Cash jumped from 3,195 to 5,802 billion rupiah in the second quarter.
- Liabilities also increased from 8,809 to 10,911 billion rupiah so net cash improved from -5,614 to -5,109 billion rupiah.
- With our forecast cashflow & a -600 billion rupiah equity payout, net cash will be -3,460 billion rupiah in 12 months time.
Value, at 0.77X assets
- PWON capital from the last six years dropped to 1,399 billion rupiah in the second quarter.
- At the current market value of 21,770 billion rupiah, based on our forecasts, it’s at 3.70X sales & 0.77X assets with a 3% yield.
- Our free cashflow forecast is 2,248 billion rupiah. At 15X, this gives a 55% higher target price of 703 rupiah.
