11 October 2019 (closed)
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PT Arwana Citramulia Tbk is one of the big four ceramics manufacturers in Indonesia. The company produces low cost ceramic tiles to serve the medium-low segment market nationwide. Headquartered in Jakarta, Arwana sells the products through its sole distributor (and subsidiary) Primagraha Keramindo (PGK) as well as more than 40 sub-distributors spread across cities and towns in Indonesia, together with thousands of retail outlets. The company commands a 20 percent domestic market share in Indonesia's ceramics industry.
|Industry Sector||Basic Industry & Chemicals|
|Industry Sub Sector||Ceramics, Glass, Porcelain|
|Established||22 February 1993|
|Listed||17 July 2001|
|Listed Company Code||ARNA|
|Major Shareholders (>5%)||Credit Suisse AG SG Trust Account Cl. (24.3%)
Suprakreasi Eradinamika (13.9%)
UBS AG, SG Non-Treaty Omn. Acc. 2091 (12.2%)
|Key Subsidiaries||Primagraha Keramindo|
Stock Quote Arwana Citramulia - ARNA:
Arwana Citramulia operates four ceramics factories. These are located in Tangerang and Serang (both in West Java), Gresik (East Java), and Indralaya (South Sumatra). At the start of 2014, the company had a total annual production capacity of 49.4 million m². A fifth plant - located in Mojokerto (East Java) - is being developed and should become operational in 2015. Increased production capacity in combination with large domestic demand amid a booming economy (which involves considerable real estate development) will impact positively on the company's sales figures. The opening of the Indralaya plant in 2013 and the Mojokerto plant in 2015 reduce logistics costs caused by the country's notorious lack of quality and quantity of infrastructure.
The company offers a variety of products including Embossed, Marble, Plain Color, Granity, Strata, Rustic, Fancy Wood and Fancy Decorative. The most common sizes are 20 x 20 cm and 30 x 30 cm. However, the current trend indicates popularity of 40 x 40 cm sizes. Subway tiles of 20 x 25 cm and 25 x 40 cm for wall tiles have also been developed by the company, albeit from a small base. In 2014 it was reported that Arwana Citramulia will launch new products targeting Indonesia's middle class-up segment. This involves 60 x 60 cm and 80 x 80 cm tiles imported from Vietnam as well as digital printing technology.
Ceramic consumption in Indonesia is only one m² per capita, which constitutes a very low figure compared to developed countries as well as Indonesia's regional peers.
A problem for companies engaged in Indonesia's ceramics business is the lack of a reliable energy supply (gas) as the ceramics business is energy-intensive. Energy is the largest cost component in the ceramics production process, accounting for 35 percent of total production costs.
Arwana Citramulia's Financial Highlights:
|Income from Operations||352.1||102.4||143.0||186.7|
|Income before Tax||348.7||95.5||123.8||166.2|
|Earnings per Share¹||35,4||9,51||12,32||16,46|
|Cash Dividend per Share¹||12||5||5|
|Price/Earnings Ratio (x)||52,58||42,21||20,78|
|Price/Book Value (x)||4,03||2,44|
|Income from Operations||128.2||141.6||150.2||224.4||321.8|
|Income before Tax||90.9||107.7||129.9||212.3||316.8|
|Earnings per Share¹||35||43||51,6||85,3||32,1|
|Cash Dividend per Share¹||7||15||20||40||16|
in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Arwana Citramulia, Annual Report 2017
Projection Arwana Citramulia's Future Corporate Earnings:
|P/E Ratio (x)|
in billion IDR, unless otherwise stated
Sentra Niaga Puri Indah Blok T2 No. 6-7
Jakarta - 11610
Phone: +62 21 583 02363
Fax: +62 21 583 02361