Matahari Putra Prima - PT Trimegah Sekuritas Indonesia Tbk

December 18, 2015
Matahari Putra Prima
Flash Note—Grand Opening of SmartClub
Dian Octiana
([email protected])
We came to the grand opening of SmartClub in Cikokol-Tangerang yesterday
(1st store), the first store that MPPA converted into wholesale. The store has
two floors (1st fl. for dried groceries and fresh foods, and 2nd fl. for non-food
products) with 6.600sqm2 gross area and 6.000sqm2 net area. The nearest
hypermarkets are Hypermart and Transmart Carrefour (~20mnts distance).
Here are the key points:

MPPA is targeting 3 business relationships through SmartClub; B2B for
business owners, grocery shopping for retail buyers, and franchise of
“Foodmart Express” for its particular investors.

The main differences of SmartClub, compared to Hypermart and the
competitors are the alternative payment through payment solution program through SFK (Permata Bank’s subsidiary), and delivery services
(terms and conditions apply).

SmartClub starts operating at 8:00 am everyday, earlier than other
hypermarkets. SmartClub allows member and non-member shoppers to
shop in there, as same as Indogrosir. For non-member shoppers, they
will get a daily pass everytime they shop there.

SmartClub has already had ~30k members since 3 months prior to the
opening; 60% traders, 22% business owners, and 18% service companies. The members will get additional benefits; reward points, special
promotions, free parking, delivery services, payment solution program
powered by SFK (Permata Bank’s subsidiary), etc.

Its product mix consists of grocery products (6k SKUs), fresh products
(3k SKUs), and non-food products (2k SKUs). The management stated
that 30% of its merchandise is not sold in other hypermarkets, e.g.
frozen beef tongue.

The management targets that SmartClub will have 2x productivity (per
sqm per month) than Hypermarket’s, despite 5-10% lower ASP.

The company plans to open 5 new stores in FY16, located in Greater
Jakarta (2), Sumatera (1), Sulawesi (1), West Nusa Tenggara (1). The
management did not state any CAPEX guidance for SmartClub. Yet, total
investment value for SmartClub in Cikokol was ~Rp30bn.


We see that this new concept is MPPA’s new strategy to deal with soft
demand admist the tight competition, as some of Hypermarts might be
changed to SmartClub. There are only 2 players in the industry; LotteMart Wholesale (20 stores), and Indogrosir (14 stores). Yet, we have to
check with the competitors to get better insight for further growth of
SmartClub, as this kind of business model offers lower margin.
MPPA opened its first hypermart in 2004.
It divested its deparment store business
in 2010 to focus wholly on hypermarket
business.
BUY
Rp2,800
Company Update
Share Price
Sector
Price Target
Rp1,675
Retail
Rp2,800 (+11%)
Stock Data
Reuters Code
Bloomberg Code
Issued Shares
MPPA.JK
MPPA.IJ
5,378
Mkt Cap. (Rpbn)
Avg. Value Daily 6
Month (Rpbn)
52-Wk range
9,008
14.0
4500 / 1530
Major Shareholders
PT. Multipolar Tbk.
Prime Star Investment Pte.Ltd.
Public
50.2%
26.1%
23.7%
MPPA is currently trading at 18x FY16F P/E.
Companies Data
Year end Dec
2013
2014
2015E
2016E
2017E
Sales (Rp bn)
11,913
13,590
14,794
16,381
18,594
445
83
293
554
103
505
415
77
415
501
93
501
632
118
632
54
94
77
93
118
622.8%
186
72.4%
36
-17.8%
27
20.7%
33
26.3%
41
Net Profit (Rp bn)
EPS (Rp bn)
Core Profit (Rp bn)
Core EPS (Rp)
Core EPS Growth (%)
DPS (Rp)
BVPS (Rp)
613
525
566
632
Avg. 5 Day MA Trading Value (RHS)
5,000
3,500
20.3
24.7
20.5
16.2
1.9%
1.4%
1.7%
2.2%
200.0
3,000
2,500
150.0
2,000
100.0
1,500
-
35.1
9.7%
250.0
4,000
717.1
Div Yield (%)
Price (LHS)
(Rpbn)
300.0
4,500
1,000
Core P/E (x)
PT Trimegah Securities Tbk - www.trimegah.com
Stock Price & Value
50.0
500
Dec-14
0.0
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
FLASH NOTE
Dec-15
1
Figure 1. Opening gate of SmartClub grand opening
Source: TRIM Research
Figure 2. SmartClub’s product mix
Source: TRIM Research
PT Trimegah Securities Tbk - www.trimegah.com
FLASH NOTE
2
Figure 3. SmartClub’s special services
Source: TRIM Research
PT Trimegah Securities Tbk - www.trimegah.com
FLASH NOTE
3
Income Statement (Rpbn)
Year end Dec
Balance Sheet (Rpbn)
2013
2014
2015E
2016E
2017E
Year end Dec
2013
2014
2015E
2016E
2017E
11,913
13,590
14,794
16,381
18,594
Cash and equivalents
1,366
748
919
940
942
Growth (%)
9.6%
14.1%
8.9%
10.7%
13.5%
Other curr asset
2,802
3,156
3,802
3,918
4,443
Gross Profit
1,889
2,354
2,489
2,772
3,165
Opr. Profit
389
647
556
665
811
Net fixed asset
1,087
1,273
1,492
1,765
2,103
EBITDA
589
909
776
937
1,149
Other asset
1,325
651
1,177
1,044
1,332
Total asset
6,580
5,827
7,390
7,667
8,819
188
0
500
0
0
2,850
2,752
2,996
3,469
3,823
Revenue
Growth (%)
61.2%
54.3%
-14.6%
20.8%
22.6%
Net Int Inc/(Exp)
(3)
19
(9)
(4)
24
Gain/(loss) Forex
0
0
0
0
0
ST debt
Other curr liab
Other Inc/(Exp)
200
65
0
0
0
Pre-tax Profit
585
731
548
661
834
(140)
(177)
(132)
(160)
(202)
0
0
0
0
0
Minority interest
Tax
Minority Int.
Extra. Items
0
0
0
0
0
445
554
415
501
632
293
622.8%
186
505
72.4%
36
415
-17.8%
27
501
20.7%
33
632
26%
41
0.0%
-80.6%
-25.1%
20.7%
26%
224.8%
34.9%
34.9%
34.9%
34.9%
Reported Net Profit
Core Net Profit
growth (%)
Dividend per share
growth (%)
Dividend payout
Cash Flow (Rpbn)
Year end Dec
LT debt
0
0
0
0
0
247
253
851
799
1,140
0
0
0
0
0
Total Liabilities
3,285
3,006
4,347
4,268
4,963
Shareholders Equity
3,295
2,822
3,043
3,399
3,856
Net (debt) / cash
1,178
748
419
940
Total cap employed
3,542
3,075
3,894
4,198
4,997
Net Working capital
1,131
1,152
1,225
1,390
1,562
188
0
500
0
0
Other LT Liab
Debt
Key Ratio Analysis
2013
2014
2015E
2016E
2017E
Year end Dec
2013
2014
2015E
2016E
2017E
15.9%
17.3%
16.8%
16.9%
17.0%
Opr Margin (%)
3.3%
4.8%
3.8%
4.1%
4.4%
EBITDA Margin (%)
4.9%
6.7%
5.2%
5.7%
6.2%
2.5%
3.7%
2.8%
3.1%
3.4%
Profitability
Core Net Profit
293
505
415
501
632
Depr / Amort
200
262
220
272
338
35
(451)
(402)
356
(171)
571
175
175
175
175
Core Net Margin (%)
CF's from oprs
1,100
490
407
1,304
975
ROAE (%)
12.5%
18.1%
14.2%
15.5%
17.4%
Capex
(299)
(111)
(544)
(640)
(799)
ROAA (%)
6.0%
8.9%
6.3%
6.7%
7.7%
1.4
Chg in Working Cap
Others
Others
CF's from investing
1,958
241
2
2
2
1,659
130
(542)
(638)
(798)
Gross Margin (%)
Stability
Current ratio (x)
1.4
1.4
1.4
1.4
Net Debt to Equity (x)
(0.4)
(0.3)
(0.1)
(0.3)
Net Debt to EBITDA (x)
(2.0)
(0.8)
(0.5)
(1.0)
4.7
43.1
20.2
24.2
nm
Net change in debt
(1,817)
(188)
500
(500)
0
Others
(1,002)
(988)
(194)
(145)
(175)
CF's from financing
(2,818)
(1,176)
306
(645)
(175)
(59)
(555)
172
21
2
Cash at BoY
1,425
1,303
748
919
940
A/P (days)
72
62
62
62
62
Cash at EoY
1,366
748
919
940
942
A/R (days)
1
1
1
1
1
232
190
(304)
493
(17)
Inventory (days)
72
80
95
88
88
Net cash flow
Free Cashflow
Interim Results
(0.8)
Efficiency
Capital History
Year end Dec
3Q14
4Q14
1Q15
2Q15
3Q15
Sales
3,634
3,529
3,347
3,507
3,593
Gross Profit
638
632
597
606
597
Opr. Profit
195
260
102
126
108
Net profit
151
200
82
94
70
Core profit
151
199
85
96
72
17.6%
17.9%
17.8%
17.3%
16.6%
Opr. Margins (%)
5.4%
7.4%
3.1%
3.6%
3.0%
Net Margins (%)
4.1%
5.7%
2.4%
2.7%
2.0%
Core Margins (%)
4.2%
5.6%
2.6%
2.7%
2.0%
Gross Margins (%)
Interest Coverage (x)
(0.2)
PT Trimegah Securities Tbk - www.trimegah.com
Date
18-Dec-92
IPO @ 7,150
FLASH NOTE
4
PT Trimegah Securities Tbk
Gedung Artha Graha 18th Floor
Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190, Indonesia
t. +62-21 2924 9088
f. +62-21 2924 9150
www.trimegah.com
DISCLAIMER
This report has been prepared by PT Trimegah Securities Tbk on behalf of itself and its affiliated companies and is provided for information
purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to b uy. This report has
been produced independently and the forecasts, opinions and expectations contained herein are entirely those of Trimegah Secu rities.
While all reasonable care has been taken to ensure that information contained herein is not untrue or misleading at the time of publication, Trimegah Securities makes no
representation as to its accuracy or completeness and it should not be relied upon as such. This report is provided solely for the information of clients of Trimegah Securities who
are expected to make their own investment decisions without reliance on this report. Neither Trimegah Securities nor any officer or employee of Trimegah Securities accept any
liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. Trimegah Securities and/or persons connected with it may have acted
upon or used the information herein contained, or the research or analysis on which it is based, before publication. Trimegah Securities may in future participate in an offering of
the company’s equity securities.
This report was prepared, approved, published and distributed by PT Trimegah Securities Tbk located outside of the United States (a “non-US Group Company”). This report is
distributed in the U.S. by Enclave Capital LLC (“Enclave Capital”), a U.S. registered broker dealer, on behalf of PT Trimegah Securities Tbk only to major U.S. institutional investors
(as defined in Rule 15a-6 under the U.S. Securities Exchange Act of 1934 (the “Exchange Act”)) pursuant to the exemption in Rule 15a-6 and any transaction effected by a U.S.
customer in the securities described in this report must be effected through Enclave Capital. Neither the report nor any analyst who prepared or approved the report is subject to
U.S. legal requirements or the Financial Industry Regulatory Authority, Inc. (“FINRA”) or other regulatory requirements pertaining to research reports or research analysts. No non
-US Group Company is registered as a broker-dealer under the Exchange Act or is a member of the Financial Industry Regulatory Authority, Inc. or any other U.S. self-regulatory
organization.