Saratoga Investment Portfolio Enjoys Encouraging Growth, Books IDR 45.8 Trillion in Net Asset Value in Q3 2021
By : Nata Kesuma | Friday, October 29 2021 - 21:30 IWST
PT Saratoga Investama Sedaya Tbk.
INDUSTRY.co.id - Jakarta, October 29, 2021 — PT Saratoga Investama Sedaya Tbk. (ticker code: SRTG) has successfully booked Net Asset Value (NAV) of IDR 45.8 trillion at the end of the third quarter of 2021. The NAV increased by 44.45 percent from IDR 31.7 trillion at the end of 2020.
As of September 2021, Saratoga also posted a net profit of IDR 14.1 trillion – attributable to owners of the parent company. This is more than ten times compared to the performance of the first nine months of 2020, amounting to IDR 1.2 trillion.
Saratoga President Director Michael Soeryadjaya said that the promising economic recovery in 2021 had strengthened the company's investment portfolio performance. This is consistent with the gradual decline in the spread of the COVID-19 virus.
“The sustained momentum of Saratoga's investment portfolio business fundamentals is the key to the Company’s positive performance in comparison to the same period in 2020. We are optimistic that the ongoing economic recovery and the highly encouraging success rate of the COVID-19 vaccination program will continue to strengthen our business portfolio going forward," said Michael in an official statement in Jakarta (29/10).
Saratoga's NAV growth this year is mainly attributable to the increase in share prices of PT Tower Bersama Infrastructure Tbk. (ticker code: TBIG), PT Merdeka Copper Gold Tbk. (ticker code: MDKA), PT Adaro Energy Tbk. (ticker code: ADRO), and PT Mitra Pinasthika Mustika Tbk. (ticker code: MPMX).
The strength of Saratoga's investment portfolio fundamentals also had an impact on the Company’s dividend income. As of the end of the third quarter of 2021, the Company recorded a dividend increase of 35.01 percent to IDR 871 billion, with the largest dividends contributed by ADRO, TBIG and MPMX.
Michael added that to optimize business opportunities, Saratoga had invested in new sectors, particularly technology. The investments include SIRCLO, the leading e-commerce solution company in Indonesia and Fuse insurtech platform (insurance distribution channel technology), which aims to reach a wider insurance market in Indonesia.
“Our investment portfolio in the technology sector is a strategic initiative for Saratoga to optimize opportunities in the industry, which we project will continue to gain traction in the future. We will be actively involved in the development process and business strategy of the new investee companies,” Michael explained.
Supporting Investment Company Business Development
Saratoga Director of Investment Devin Wirawan added that amid today's highly dynamic business challenges, Saratoga remained disciplined and consistently maintained operational efficiency. This includes maintaining the debt ratio of Loan to Value at a healthy level of 6.3 percent and operating costs at 0.4 percent of NAV.
“Our commitment is to ensure that Saratoga is able to execute each of its investment strategies efficiently. Saratoga consistently encourages our investee companies to make the most of every business opportunity, allowing us to play an active role in Indonesia's economic recovery,” added Devin.
A number of Saratoga investee companies continue to accelerate their business by carrying out expansions. Primaya Hospital – under PT Famon Awal Bros Sedaya – has opened five new hospitals since the beginning of the year. Primaya Hospital currently operates as many as 14 hospital units.
MDKA consistently shows promising progress in follow-up drilling at the Tujuh Bukit Copper Mine Project. The copper mine drilling was carried out in the southern and western ends of the Upper High Grade Zone.
In the automotive business, MPMX introduced OtoDeals or www.otodeals.com, an innovative used car sales platform, in September. The platform is designed to assist buyers in finding the right, high-quality, and guaranteed used cars according to their needs.
To tap into opportunities in the industrial gas sector, Saratoga increased its holding in PT Aneka Gas Industri Tbk. (ticker code: AGII) from 7.84 percent to 8.84 percent. This year, AGII has taken a series of strategic steps. For example, the company completed the acquisition of two business units from PT Samator worth IDR 600 billion.
AGII is also set to supply industrial gas for the smelter owned by PT Timah Tbk. (ticker code: TINS) in the Province of Bangka Belitung Islands for 12 years.
“The initiatives and strategies of our investee companies will be instrumental in optimizing every business opportunity in the current economic recovery. Saratoga will fully support every investee company's effort to increase company value and maintain business continuity in the long term," said Devin.
NEW INVESTMENTS SIRCLO
SIRCLO is a leading e-commerce solutions company in Indonesia which helps businesses enter the online market. SIRCLO offers solutions that are divided into two main categories: entrepreneurial and enterprise solutions. The company has served more than 100,000 brands to grow their online business.
Fuse is an insurtech platform which connects various insurance products from many insurance companies with various distribution channels or partners. Fuse applies the latest cutting-edge technology to make insurance accessible, instantly available, and affordable for everyone.
INVESTEE COMPANIES’ PERFORMANCE
PT Tower Bersama Infrastructure Tbk. (TBIG)
In semester I-2021, TBIG succeeded in leveraging the operation of telecommunication sites to 19,709 locations with 37,232 tenants from 16,625 locations with 31,850 tenants at the end of 2020.
In August 2021, TBIG also issued bonds worth IDR 1.2 trillion with a maturity date of August 2022 at an interest rate of 4.25 percent. Meanwhile, in September 2021, TBIG also received approval from EGMS to issue bonds denominated in foreign currencies with a total issuance value of up to USD 900 million, within 12 months of the approval date of the EGMS.
PT Merdeka Copper Gold Tbk. (MDKA)
In August 2021, MDKA reported encouraging results of the follow-up drilling of the Tujuh Bukit Copper Mine Project. The advanced drilling focused on testing the southern and western ends of the Upper High Grade Zone.
PT Adaro Energy Tbk. (ADRO)
Newcastle coal prices continued to strengthen from USD 87 per ton in the first quarter of 2021 to USD 114 per ton in the second quarter of 2021. Recently, coal prices have even hit their highest levels of above USD 200 per ton, due to limited supply. ADRO target coal production to reach 52 million-54 million tons for 2021.
PT Mitra Pinasthika Mustika Tbk. (MPMX)
In September 2021, MPMX introduced an innovative used car sales platform, OtoDeals (www.otodeals.com). This platform is designed to assist buyers in finding the right, high-quality and guaranteed used car according to their individual needs.
OtoDeals is set to provide a seamless online transaction experience when buying a used car, starting with a display of a quick search feature by comparing four used car units at once to see the specifications and condition of the cars in detail.
In addition, there is a test-drive feature which allows users to order anywhere, at any time. There is also a “free home delivery” service – where used cars are sent directly to the consumer’s home.
The trend of national motorcycle sales also continued to see encouraging growth amid restrictions of social activities, where sales reached 1.3 million units in the third quarter of 2021 compared to 1.2 million in the second quarter of 2021. MPMX projects revenue in 2021 to grow by 20-25 percent. Thus, the Net Profit After Tax (NPAT) in 2021 is predicted to reach more than IDR 300 billion.
MGM Bosco Logistics
The construction of the second phase of the Mulia Bosco Utama Bekasi cold storage facility was completed in September 2021, earlier than the initial schedule, and has already accepted customers. The second phase of the cold storage development add about 30 percent to the storage capacity of the existing facilities.
MGM Bosco Logistics also reported positive performance in terms of revenue and EBITDA for the period up to September 2021.
PT Deltomed Laboratories
Deltomed introduced Kojima candy, made from herbal ingredients (honey, habbatussauda or black cumin, and dates) that are effective in maintaining the immune system and body fitness. Deltomed also recorded double-digit revenue growth performance as of September 2021.
PT Aneka Gas Industri Tbk. (AGII)
In March 2021, AGII completed the acquisition of two business units from PT Samator, thus adding assets worth IDR 600 billion. In May 2021, AGII signed a 12-year contract with PT Timah Tbk. (TINS) to build a factory to supply industrial gas for a tin refining smelter in Muntok City, in the West Bangka Regency, Bangka Belitung Islands Province.
The smelter is targeted to be fully operational by 2022. As of September 2021, Saratoga has also increased its investment in AGII, resulting in share ownership increase to 8.84 percent from the previous 7.84 percent.