Indofood Sukses Makmur stock and business portfolio
COMPANY PROFILE
Indofood Sukses makmur Tbk is the merger between PT Ciptakemas Abadi, PT Gizindo Primanusantara, PT Indosentra Pelangi, and PT Indobiskuit Mandiri Makmur. The major industry of Indofood Sukses Makmur is food and beverages and the sub industry is diversified food. PT Indofood CBP Sukses Makmur Tbk was established on September 2, 2009 and the founder of this company is Sudono Salim.
BUSINESS DESCRIPTION
PT Indofood Sukses Makmur Tbk is an Indonesia based processed foods company. The company is engaged in the manufacture of noodles, flour milling, packaging, management services and research and development. The company ‘s products include instant noodles, wheat flour, branded edible oils and fats, baby foods and snack foods, as well as food seasoning products. Its brands include Indomie, Supermie, Sarimi, Palmia, Simas, Lay’s, JetZ, Promina, Sun and the Indofood and Piring Lombok range of food seasonings and flour. The office center of this company is located in Sudirman Plaza, Indofood tower, 26 floors, Jendral Sudirman Street, Kav 76-78, Jakarta. The company’s production facilities are located in Java, Sumatera, Kalimantan, and Sulawesi Island. The direct subsidiaries are Drayton Pte. Ltd, Indofood (M) Food Industries Sdn. Bhd., PT Surya Rengo Containers, and Indofood Fritolay Makmur. The indirect subsidiaries are PT Pinnancle Permata Makmur, PT Sukses Artha Jaya, and PT Indolakto
Indofood Sukses Makmur Tbk has 4 strategic business units:
• Consumer Branded Products (CBP).
• Bogasari.
• Agribusiness operates under PT Salim Ivomas Pratama.
• Distribution.
ANALYSIS OF STOCK RETURN
The average of this company is 0.001960499. It means that if the investors want to invest in Indofood Sukses Makmur Tbk, they expected will get gain 0.1960499%.Standard deviation of this company is 0.022380714 or 2.2380714% and the average is 0.1960499%. It means that investor expected to earn between 0.1960499% ± 2.2380714%. They could get loss (0.1960499% - 2.2380714%) or get gain (0.1960499% + 2.2380714%).
The highest point is in September 22, 2010 that is 0.074766355. It is happen because First Pacific Co Ltd orders 17.492.865 unit stock of Indofood Sukses Makmur with initial public offering.
The lowest point in 5 May 2010 stock return is -0.064935065. It is because the decision of Komisi Pengawas dan Persaingan Usaha (KPPU) on 4 may 2010 that decide PT Salim Ivomas Pratama as the oil company is break the law about Oligopoly, Pricing, and cartel that written on act number 5 year 1999.
ANALYSIS OF MARKET RETURN
The average of market return is 0.001781761 or 0.178176% and the standard deviation is 0.012902156 or 1.2902156%. It means if the investor wants to invest their money in the market, they will get loss (0.178176% - 1.2902156 %.) or will get gain (0.178176% + 1.2902156 %). The average is 0.001781761, from the average we can know that any company that include in the market will give gain for the investor if they invest the money in the company.
The highest point on May 26, 2010 with the value of market return is 0.072653652. It is happen because index in Asia stock exchange give positive bias to the IHSG. Asia stock exchange to be stronger because increasing of price commodities, also the positive movement of world oil price and Yen currency become weaker toward Euro. Also in BEI, blue chips give the contribution to make IHSG to be stronger.
The lowest point on May 5, 2010 with the value of market return is -0.038110719. It is happen because the negative bias from regional stock exchange. The news of Sri Mulyani Indrawati as finance minister that is going down also gives impact to the market.
ANALYSIS OF BETA OF COMPANY STOCK
The result of the Beta is 0.966201782 that is less than 1. From the result we know that Indofood Sukses Makmur Tbk include in defensive stock because the stock remain stable under the changing of economic condition.
ANALYSIS OF COMPANY BUSINESS PORTFOLIO USING BCG MATRIX
The Company Strategic Business unit:
• Consumer Branded Product is include in stars because if we see from the nine month 2010 result, the sales of this unit is for external 13,317.9 billion and for inter segment 371.0 billion so it contribute to the consolidated net sales around 47%.
• Bogasari is include in Cash Cows because if we see the sales of nine months 2010 result is for external is 7,327.0 billion and for inter segment is 2.204.7. And this unit gives contributed 26% to consolidated net sales.
• Agribusiness include in Cash Cows because the sales for external is 5,342.1 billion and for the inter segment is 3,957.3 billion. This unit contributed 19% to the consolidated net sales.
• Distribution include in Question Marks because if we see the sales in 2010 of this unit is 2.321.9 billion and it is contributed to the consolidated net sales around 19%.
The Product:
• Noodles with the brands are Indomie, Supermie, Sarimi, Mi instan sakura, Pop Mie, Pop Bihun, Mi telur cap 3 ayam. Noodles include in Stars because if we see the sales for external is 9,286.4 billion and for inter segment is 287.4 billion.
• Dairy with the brands are Indomilk, Cap Enaak, Tiga Sapi, Kremer, Crima, Nice Yoghurt, Orchid Butter, and Indoeskrim. Dairy include in Cash Cows because the sales of this year is for external 2,502.1billion and for inter segment is 9.3, the total sales on 2009 is 2,378.9.
• Food seasonings with the brands are Indofood Bumbu Racik, Sambal Indofood, Kecap Indofood, Maggi, Kecap Piring Lombok, Indofood Bumbu Instan. Food seasoning is include in Question Marks because if we see the sales for external is 437.1 billion and for inter segment is 170.9 billion.
• Snack Foods with the brands are Chitato, Chiki, Jetz, Qtela, Cheetos, Lays, and Trenz. It is including in Question Marks because if we see the sales for external is 734.2 billion and for inter segment is 3.4 billion.
• Nutrition & Special Foods with the brands are Promina and Sun. it is including Question Marks because the sales for external are 358.1 billion.
• Flour with the brands is Cakra Kembar, segitiga Biru, Kunci Biru, and La Fonte. It is including in Cash Cows because the sales for external is 7,327.0 billion and for inter segment is 2,204.7 billion.
• Plantations is including in Stars because the sales for external is 1,871.1 billion and for inter segment is 2,739.5.
• Cooking Oil & Fats with the brands are Bimoli, Simas Palmia, and Happy Salad Oil. It is include in Stars also because the sales for external 2,923.5 billion and for inter segment is 1,162.6 billion.
• Commodities are including in Question Marks because the sales for external is 547.5 billion and for inter segment is 55.2 billion.
CONCLUSION
if we see the average return is higher than average of market return so if the investor want to invest their money in this company, they will get more profit than if they invest their money in the market.
the company we can conclude that this company has higher risk because if we see the standard deviation of the market return, the standard deviation of this company is higher than it.
The beta of this company stock is 0.966201782 that means the beta is less than 1. Beta less than 1 have less price volatility than the market as a whole and have less risk.
From the analysis that Consumer Branded Products is the Stars of this company because this unit contributes the highest profit to the company. And from the product, we can conclude that the Stars of this company are Noodles because this product gives the highest profit to the company. From the Agribusiness, the products are Plantations and Cooking Oils& fats that include in Stars because they contribute the highest profit for this company.
Indofood Sukses makmur Tbk is the merger between PT Ciptakemas Abadi, PT Gizindo Primanusantara, PT Indosentra Pelangi, and PT Indobiskuit Mandiri Makmur. The major industry of Indofood Sukses Makmur is food and beverages and the sub industry is diversified food. PT Indofood CBP Sukses Makmur Tbk was established on September 2, 2009 and the founder of this company is Sudono Salim.
BUSINESS DESCRIPTION
PT Indofood Sukses Makmur Tbk is an Indonesia based processed foods company. The company is engaged in the manufacture of noodles, flour milling, packaging, management services and research and development. The company ‘s products include instant noodles, wheat flour, branded edible oils and fats, baby foods and snack foods, as well as food seasoning products. Its brands include Indomie, Supermie, Sarimi, Palmia, Simas, Lay’s, JetZ, Promina, Sun and the Indofood and Piring Lombok range of food seasonings and flour. The office center of this company is located in Sudirman Plaza, Indofood tower, 26 floors, Jendral Sudirman Street, Kav 76-78, Jakarta. The company’s production facilities are located in Java, Sumatera, Kalimantan, and Sulawesi Island. The direct subsidiaries are Drayton Pte. Ltd, Indofood (M) Food Industries Sdn. Bhd., PT Surya Rengo Containers, and Indofood Fritolay Makmur. The indirect subsidiaries are PT Pinnancle Permata Makmur, PT Sukses Artha Jaya, and PT Indolakto
Indofood Sukses Makmur Tbk has 4 strategic business units:
• Consumer Branded Products (CBP).
• Bogasari.
• Agribusiness operates under PT Salim Ivomas Pratama.
• Distribution.
ANALYSIS OF STOCK RETURN
The average of this company is 0.001960499. It means that if the investors want to invest in Indofood Sukses Makmur Tbk, they expected will get gain 0.1960499%.Standard deviation of this company is 0.022380714 or 2.2380714% and the average is 0.1960499%. It means that investor expected to earn between 0.1960499% ± 2.2380714%. They could get loss (0.1960499% - 2.2380714%) or get gain (0.1960499% + 2.2380714%).
The highest point is in September 22, 2010 that is 0.074766355. It is happen because First Pacific Co Ltd orders 17.492.865 unit stock of Indofood Sukses Makmur with initial public offering.
The lowest point in 5 May 2010 stock return is -0.064935065. It is because the decision of Komisi Pengawas dan Persaingan Usaha (KPPU) on 4 may 2010 that decide PT Salim Ivomas Pratama as the oil company is break the law about Oligopoly, Pricing, and cartel that written on act number 5 year 1999.
ANALYSIS OF MARKET RETURN
The average of market return is 0.001781761 or 0.178176% and the standard deviation is 0.012902156 or 1.2902156%. It means if the investor wants to invest their money in the market, they will get loss (0.178176% - 1.2902156 %.) or will get gain (0.178176% + 1.2902156 %). The average is 0.001781761, from the average we can know that any company that include in the market will give gain for the investor if they invest the money in the company.
The highest point on May 26, 2010 with the value of market return is 0.072653652. It is happen because index in Asia stock exchange give positive bias to the IHSG. Asia stock exchange to be stronger because increasing of price commodities, also the positive movement of world oil price and Yen currency become weaker toward Euro. Also in BEI, blue chips give the contribution to make IHSG to be stronger.
The lowest point on May 5, 2010 with the value of market return is -0.038110719. It is happen because the negative bias from regional stock exchange. The news of Sri Mulyani Indrawati as finance minister that is going down also gives impact to the market.
ANALYSIS OF BETA OF COMPANY STOCK
The result of the Beta is 0.966201782 that is less than 1. From the result we know that Indofood Sukses Makmur Tbk include in defensive stock because the stock remain stable under the changing of economic condition.
ANALYSIS OF COMPANY BUSINESS PORTFOLIO USING BCG MATRIX
The Company Strategic Business unit:
• Consumer Branded Product is include in stars because if we see from the nine month 2010 result, the sales of this unit is for external 13,317.9 billion and for inter segment 371.0 billion so it contribute to the consolidated net sales around 47%.
• Bogasari is include in Cash Cows because if we see the sales of nine months 2010 result is for external is 7,327.0 billion and for inter segment is 2.204.7. And this unit gives contributed 26% to consolidated net sales.
• Agribusiness include in Cash Cows because the sales for external is 5,342.1 billion and for the inter segment is 3,957.3 billion. This unit contributed 19% to the consolidated net sales.
• Distribution include in Question Marks because if we see the sales in 2010 of this unit is 2.321.9 billion and it is contributed to the consolidated net sales around 19%.
The Product:
• Noodles with the brands are Indomie, Supermie, Sarimi, Mi instan sakura, Pop Mie, Pop Bihun, Mi telur cap 3 ayam. Noodles include in Stars because if we see the sales for external is 9,286.4 billion and for inter segment is 287.4 billion.
• Dairy with the brands are Indomilk, Cap Enaak, Tiga Sapi, Kremer, Crima, Nice Yoghurt, Orchid Butter, and Indoeskrim. Dairy include in Cash Cows because the sales of this year is for external 2,502.1billion and for inter segment is 9.3, the total sales on 2009 is 2,378.9.
• Food seasonings with the brands are Indofood Bumbu Racik, Sambal Indofood, Kecap Indofood, Maggi, Kecap Piring Lombok, Indofood Bumbu Instan. Food seasoning is include in Question Marks because if we see the sales for external is 437.1 billion and for inter segment is 170.9 billion.
• Snack Foods with the brands are Chitato, Chiki, Jetz, Qtela, Cheetos, Lays, and Trenz. It is including in Question Marks because if we see the sales for external is 734.2 billion and for inter segment is 3.4 billion.
• Nutrition & Special Foods with the brands are Promina and Sun. it is including Question Marks because the sales for external are 358.1 billion.
• Flour with the brands is Cakra Kembar, segitiga Biru, Kunci Biru, and La Fonte. It is including in Cash Cows because the sales for external is 7,327.0 billion and for inter segment is 2,204.7 billion.
• Plantations is including in Stars because the sales for external is 1,871.1 billion and for inter segment is 2,739.5.
• Cooking Oil & Fats with the brands are Bimoli, Simas Palmia, and Happy Salad Oil. It is include in Stars also because the sales for external 2,923.5 billion and for inter segment is 1,162.6 billion.
• Commodities are including in Question Marks because the sales for external is 547.5 billion and for inter segment is 55.2 billion.
CONCLUSION
if we see the average return is higher than average of market return so if the investor want to invest their money in this company, they will get more profit than if they invest their money in the market.
the company we can conclude that this company has higher risk because if we see the standard deviation of the market return, the standard deviation of this company is higher than it.
The beta of this company stock is 0.966201782 that means the beta is less than 1. Beta less than 1 have less price volatility than the market as a whole and have less risk.
From the analysis that Consumer Branded Products is the Stars of this company because this unit contributes the highest profit to the company. And from the product, we can conclude that the Stars of this company are Noodles because this product gives the highest profit to the company. From the Agribusiness, the products are Plantations and Cooking Oils& fats that include in Stars because they contribute the highest profit for this company.
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