Fortune Indonesia, Tbk - PT. PEFINDO

FINANCE
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Fortune Indonesia, Tbk
Positive Revenue Growth, but Bottom Line Slashed
During 9M12, FORU posted a revenue growth of 9% YoY, which is modest when
compared to its 12% average annual growth from 2009–2011. Meanwhile, we
view FORU’s gross profit margin (GPM) was stable at 15.2%. Nevertheless,
higher selling expenses led to a lower operating profit of 1.1% and net profit of
0.9% from 2.5% and 2.0%, respectively, in 9M11. But with a high potential
increase in revenue in the fourth quarter, we foresee FORU’s operating and net
margins to reach 3.1% and 2.4%, respectively, by the end of 2012.
Figure 4: FORU’s Revenue and Gross, Operating, Net
Margin
(IDR billion)
600
500
400
300
200
100
0
2010 2011 9M11 9M12
March 8, 2013 Page 5 of 9
18,00%
16,00%
14,00%
12,00%
10,00%
8,00%
6,00%
4,00%
2,00%
0,00%
Revenue Gross Margin Operating Margin Net Margin
Source: PT Fortune Indonesia Tbk, Pefindo Equity & Index Valuation Division
Sound Balance Sheet
It is worthwhile to note FORU’s efforts to better manage its financial condition, as
seen in its increasing liquidity and decreasing leverage. We noted that during
9M12, FORU’s current ratio was at 2.16x, compared to 1.96x in 9M11, mainly due
to declining short-term bank debts. Accordingly, FORU’s debt-to-equity ratio
(DER) and interest-bearing debt-to-equity ratio also improved to 0.85x and
0.02x, respectively, in 9M12, compared to 1.08x and 0.07x in 9M11.
Figure 5: FORU’s Current Ratio, DER and Interest
Bearing Debt
2.50
2.00
1.50
1.00
0.50
0.00
1.63
1.63
1.74
1.29
1.96
1.08
2.16
0.85
0.02 0.06 0.07 0.02
2010 2011 9M11 9M12
Current Ratio DER Interest Bearing Dent to Equity
Source: PT Fortune Indonesia Tbk,, Pefindo Equity & Index Valuation Division