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Strength
3Q24 energy costs (33% of COGS) fell -12% YoY on the back of lower coal prices (-7% YoY); finance expenses (-79% of pre-tax profit) dropped -21% YoY
Opportunity
Demand may see an uptick in 2025 and beyond, driven by the government’s Three Million Homes program (2mn in rural areas & 1mn in cities); new jetty in Tuban will provide additional production capacity of c. 1.9mn/year (current: 8.5mn/year), with expected operation date in 1Q25
Weakness
Margins saw considerable decline as the company shifted its focus to Blue Ocean building materials (non-cement), which offer lower margins; this prompted management to revise its FY24 EBITDA margin target down to 16-17%, from the previous 20%
Threat
Intense competition from Chinese players may trigger another price war, adding more pressure on cement ASP; underwhelming 3Q24 results could lead to analyst earnings downgrades, resulting in potentially further market underperformance for the stock price
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
