MIRA INFORM REPORT

 

 

Report Date :

29.10.2007

 

IDENTIFICATION DETAILS

 

Name :

P.T. ULTRJAYA MILK INDUSTRY & TRADING COMPANY Tbk

 

 

Registered Office :

Jalan Raya Cimareme No. 131, Padalarang, Bandung 40552, West Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

30.06.2007

 

 

Date of Incorporation :

2 November 1971

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Food and Soft Drink Processing

Investment Holding

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 9,100,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Correct Name of Company

 

P.T. ULTRJAYA MILK INDUSTRY & TRADING COMPANY Tbk

 

 

Address

 

Head Office & Factory

Jalan Raya Cimareme No. 131

Padalarang,

Bandung 40552

West Java

Indonesia

Phone               - (62-22) 86700700 (Hunting), 6654610, 6654611

Fax.                  - (62-22) 6654612

Land Area         - 25,000 sq. meters

Factory Space   - 11,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

a. 2 November 1971 as P.T. DJAJAMURNI MILK INDUSTRY & TRADING COMPANY

b. 29 December 1971 as P.T. ULTRADJAJA MILK INDUSTRY & TRADING COMPANY

c. 27 September 1989 as P.T. ULTRAJAYA MILK INDUSTRY & TRADING COMPANY

d. 16 March 1998 as P.T. ULTRAJAYA MILK INDUSTRY & TRADING COMPANY Tbk

 

                                  

Legal Form

 

P.T. Tbk (Perseroan Terbatas Terbuka) or Public Listed Company

 

                                                       

Company Reg. No.

 

The Ministry of Justice and Human Rights

No. C-22050 HT.01.04.TH.2000

Dated 6 October 2000

 

 

Company Status 

 

Private and Domestic Investment (PMDN) Company

 

           

 

 

 

 

 

Permit by the Government Department

 

The Department of Industry and Trade

- No. 104/KANWIL.10.06.29/AI/B/IZ.00.02/X/91

  Dated 20 October 1991

- TDP No. 10.24.1.15.00112

  Dated 26 October 2000

 

 

Related Company

 

a. P.T. SEOLINDO PRIMATAMA (Plastic Packaging Manufacturing)

b. P.T. KRAFT ULTRAJAYA INDONESIA (Cheese Manufacturing)

c. P.T. PRAWIRAWIDJAJA PRAKARSA (Investment Holding)

d. P.T. CAMPINA ICE CREAM INDUSTRY (Ice Cream Processing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                             : Rp. 1,500,000,000,000.-

Issued Capital                                   : Rp.    385,117,600,000.-

Paid up Capital                                  : Rp.    385,117,600,000.-

 

Shareholders/Owners :

a. P.T. KUSTODIAN SENTRAL EFEK INDONESIA          - Rp. 154,722,585,000.-

b. P.T. PRAWIRAWIDJAJA PRAKARSA                        - Rp. 100,538,290,000.-

c. Publics                                                                     - Rp. 129,856,725,000.-

 

  

BUSINESS ACTIVITIES

                             

Lines of Business:       

a. Food and Soft Drink Processing

b. Investment Holding

 

 

Production Capacity

 

a. Liquid Milks                           - 20 million ltrs. p.a.

b. Fruit Juices                            - 24 million ltrs. p.a.

c. Tea and other drinks               - 40 million ltrs. p.a.

d. Milk Nuts                               -   6 million ltrs. p.a.

e. Butters                                  -   1,500 tons p.a.

f. Tropical Fruit Concentrates      - 12,600 tons p.a.

g. Condensed Sweetened           - 30,000 tons p.a.

h. Cheeses                                - 10,000 tons p.a.

i. Powder Milks                          -   5,000 tons p.a.         

 

 

Total Investment

 

Owned Capital                                   - Rp. 400.0 billion

 

 

Started Operation

 

April 1975

 

 

Brand Name

 

ULTRAJAYA

 

 

Technical Assistance

 

a. SAN CORMAN of Belgium

b. MEIJI CORPORATION of Japan

 

 

Number of Employee

 

1,100 persons                                  

 

 

Marketing Area

 

Domestic    - 95%

Export         - 5%                             

 

 

Main Customer

 

Supermarket, Hypermarket, Minimarket etc.

 

 

Market Situation

 

Very Competitive

 

 

Main Competitors

 

a. P.T. NESTLE INDONESIA

b. P.T. FRISIAN FLAG INDONESIA

c. P.T. INDOLAKTO

d. P.T. INDOMILK

e. Etc.,

 

 

Business Trend

 

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

    Jalan Asia Afrika 122-124

    Badung

     West Java                                   

    Indonesia

b. ABN AMRO Bank N.V.

    Jalan Ir. H. Juanda 23-24

    Jakarta Pusat

    Indonesia

 

Auditor :

Internal Auditor

           

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2004 – Rp. 546.3 billion

2005 – Rp. 711.7 billion

2006 – Rp. 835.2 billion

2007 – Rp. 500.1 billion (as per 30 June)

 

Net Profit (Loss) :

2004 – Rp.   4.4 billion

2005 – Rp.   4.5 billion

2006 – Rp. 14.7 billion

2007 – Rp. 14.1 billion (as per 30 June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

 

 

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Abdullah Sabana Prawirawidjaja

Directors                                   - a. Mr. Samudera Prawirawidjaja B.A.

                                                  b. Mr. Ir. Yustianto Isnandar

                                                 

Board of Commissioners :

President Commissioner - Mr. Supriadi Prawirawidjaja

Commissioners                          - a. Mr. Drs. H. Soeharsono Sagir

                                                  b. Mr. Drh. Endang Suharya

                                                  c. Mr. Sneah Kar Loon

                                                           

Signatories :

President Director (Mr. Abdullah Sabana Prawirawidjaja) or one of the Directors (Mr. Samudera Prawirawidjaja B.A. or Mr. Ir. Yustianto Isnandar) which must be approved by Supervisory Board.

 

 

CAPABILITIES

 

Management Capability :

Good

 

 

Business Morality

 

Good

 

 

Credit Risk

 

Average

 

 

Credit Recommendation

 

Credit should be proceeded with monitor

 

 

Proposed Credit Limit 

 

Small amount – periodical review

 

 

Maximum Credit Limit

 

US$ 9,100,000.- on the 90 days of payments

 

 

OVERALL PERFOMANCE

 

The company originally named P.T. DJAJAMURNI MILK INDUSTRY & TRADING COMPANY set-up in November 1971 in Bandung (West Java) with an authorized capital of Rp. 300,000,000.- issued capital of Rp. 100,000,000.- entirely paid-up. Founders and original shareholders of the company are the Mr. Achmad Prawirawidjaja and his two sons Mr. Abdullah Sabana Prawirawidjaja and Mr. Supandi Prawirawidjaja. In December 1971, the company renamed to P.T. ULTRADJAJA MILK INDUSTRY & TRADING. Latter of September 1989, the company was renamed to P.T. ULTRA JAYA MILK INDUSTRY & TRADING COMPANY abbreviated into P.T. ULTRAJAYA. In May 1990, P.T. ULTRAJAYA released its 29.26% shares to the public through P.T.  Bursa Efek Jakarta (P.T. BEJ). In March 1998 Tbk (Terbuka) was added behind the name of the company to comply with the law on public listed company. Hence, the complete name of the company is P.T. ULTRAJAYA MILK INDUSTRY & TRADING COMPANY Tbk. abbreviated P.T.  ULTRAJAYA  Tbk. Since January 2001 the authorized capital was raised to Rp. 1,500,000,000,000.-, issued and paid up capital to Rp. 385,117,600,000.-.

 

The shareholders are P.T. KUSTODIAN SENTRAL EFEK INDONESIA, P.T. PRAWIRAWIDJAJA PRAKARSA, and public. We note that the shareholder of P.T. ULTRA JAYA Tbk namely P.T. PRAWIRAWIDJAJA PRAKARSA is a national private company of which whole shares of the company are controlled by Mr. Abdullah Sabana Prawiradjaja, a son of Mr.Samudera Prawiradjaja and younger brother of Mr. Supiandi Prawiradjaja.

 

P.T. ULTRAJAYA Tbk., obtained a domestic capital investment (PMDN) facility to deal with food and beverage processing industry. Its plant is located at Jalan Raya Cimareme No. 131, Padalarang (West Java). The plant started-up with operation in 1975 producing Ultra Height Temperature (UHT) Aseptic Product by using tetra packaging fresh milk which are marketed under SUSU ULTRA brand, juicy fruits marketed under BUAVITA and GOGO brands, tea distributed under THE KOTAK, TEH BUNGA and TEH LEMON brands, green pea distributed under SARI KACANG HIJAU brand, etc. Besides that P.T. ULTRAJAYA Tbk., also produces mineral water marketed under EVER SAVE brand, yoghurt under CHARM ORANGE brand. P.T. ULTRAJAYA also produces butter under Corman brand with a license from SAN CORMAN of Belgium, powdered milk under Meiji brand with a license from MEIJI CORPORATION of Japan, and ready-mixed milk under Milo brand with a license from Nestle. Some 95% of the products is marketed locally and the rest is exported to the Netherlands, Japan, Scandinavia, the United Arab Emirate, Hong Kong, P.R. China and Taiwan.

 

P.T. ULTRAJAYA Tbk., also engaged in investment holding by controls 17.50% shares of P.T. SEOILINDO PRIMATAMA, a joint ventured with SEOIL INDUSTRY CO.LTD., of South Korea (65.00%) and other local company (17.50%).  The venture is engaged in plastic packaging industry. It also controls 30% shares of P.T. KRAFT ULTRAJAYA INDONESIA, a joint ventured with KRAFT GENERAL FOOD INC., of the USA, engaged in cheese processing.

 

Generally, demand for health drink especially milk has been increasing in the last five years in line with the increasing public incomes. The competition is very tight on account of lots of similar company operating in the country. The business position of P.T. ULTRAJAYA Tbk is appraised to be favorable for having established wide marketing networks in the country. The increasing of the demand is as illustrated on the following table.

 

The growth of production capacity of milk in Indonesia,

1999-2004

 

Year

Production (Ton)

Trend (%)

Powder

Cream

Total

1999

2000

2001

2002

2003

2004

68,023

83,010

78,450

87,158

91,072

101,796

192,365

215,731

219,524

230,598

240,085

261,209

260,388

298,741

297,974

317,756

331,157

363,005

 

14.7

(0.3)

6.6

4.2

9.6

Source : Central Bureau of Statistic, processed

 

According to financial statement, the total sales turnover of P.T. ULTRAJAYA Tbk., in 2004 amounted to Rp. 546.3 billion with a net profit of Rp. 4.4 billion increased to Rp. 711.7 billion with a net profit of Rp. 4.5 billion in 2005 to Rp. 835.2 billion with a net profit of Rp. 14.7 billion in 2006. As per 30 June 2007 the sales turnover amounted to Rp. 500.1 billion with a net profit of Rp. 14.1 billion and projected to go on rising by at least 6% in 2008. The company always pays punctually its debts to suppliers ranging from 1 to 3 months. So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers. Details are as depicted in financial statement as of 31 December 2004, 2005, 2006 and as per 30 June 2007 is attached.  

 

The management is headed by Mr. Abdullah Sabana Prawirawidjaja (65), a graduate of Nan Yang University of Singapore with experience for more than 37 years in food and beverage products manufacturing and distribution. Daily, he is assisted by two directors Mr. Samudra Prawirawidjaja, BA, and Mr. Ir. Yustianto Isnandar, both are experienced professional managers in this business. The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. ULTRAJAYA MILK INDUSTRY & TRADING COMPANY Tbk is fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

 

Attachment

 

P.T. ULTRAJAYA MILK INDUSTRY & TRADING COMPANY Tbk.

Financial Statements

(Per 31 December 2004, 2005, 2006 and 30 June 2007)

 

A. BALANCE SHEETS STATEMENT

                                                                                                                      (in Rp million)

D e s c r i p t i o n

30 June 2007

31 December

2006

2005

2004

A. Current Assets

 

 

 

 

     - Cash and Cash Equivalent

114,069

75,214

46,784

16`,136

     - Securities Bill

0

40,000

54,031

0

     - Trade Receivable

118,881

122,992

118,630

100,189

     - Other Receivable

4,951

1,380

246

659

     - Inventories

267,288

147,845

169,391

150,020

     - Advance

11,899

17,495

11,765

4,087

     - Prepaid Taxes

11,585

14,735

14,116

14,836

     - Advance

8,171

1,882

1,465

862

    Total Current Assets

538,313

421,543

416,428

431,789

B. Non Current Assets

 

 

 

 

     - Investment Share

38,281

34,933

27,132

27,147

     - Fixed Assets – net

775,349

790,208

786,798

780,339

     - Deferred Tax Assets

0

0

4,037

4,424

     - Other Non Current Assets

2,631

2,396

20,049

56,541

    Total Non Current Assets

816,261

827,537

838,016

868,451

TOTAL ASSETS

1,354,574

1,249,080

1,254,444

1,300,240

C. Current Liabilities

 

 

 

 

     - Bank Loans

15,820

56,613

4,103

22,503

     - Trade Payable

132,911

55,192

42,139

31,059

     - Taxes Payable

132,981

3,086

709

2,513

     - Dividend Payable

0

0

0

0

     - Accrued Expanses

10,291

12,038

11,583

8,548

     - Current Maturities of Long Term Loan

41,472

228,704

204,268

25,000

     Total Current Liabilities

206,403

355,876

262,802

89,623

D. Non Current Liabilities

 

 

 

 

     - Long Term Liabilities

302,120

7,089

175,645

398,324

     - Employee Loan Benefit

0

0

675

2,355

     Total Non Current Liabilities

318,120

77,301

176,320

400,679

E. Minority Interest

1,180

1,104

857

0

F. Equity

 

 

 

 

     - Paid Up Capital

577,676

577,676

577,676

577,676

     - Additional Paid Up Capital

51,130

51,130

51,130

51,130

     - Revaluated Fixed Assets

37,114

37,114

37,114

37,114

     - Retained Earnings (Deficit)

162,950

148,878

148,545

144,018

     Total  Stockholders’ Equity

828,870

814,799

814,465

809,938

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

1,354,574

1,249,080

1,254,444

1,300,240

 

 

B. PROFIT & LOSS STATEMENT

 

 

D e s c r I p t I o n

30 June 2007

31 December

2006

2005

2004

INCOME STATEMENT

 

 

 

 

a. Net Sales

500,067

835,230

711,732

546,325

b. Cost of Goods Sold

(348,408)

(583,343)

(495,807)

(371,960)

c. Gross Profit

151,660

251,887

215,925

174,365

d. Operational Expenses

(101,187)

(185,810)

(154,794)

(87,912)

e. Operational Profit

50,473

66,077

61,131

86,453

f.  Other Income (Expenses)

(22,204)

(40,263)

(56,324)

(85,546)

g. Operating Profit Before Income Tax

28,268

25,813

4,807

907

h. Income Tax

(14,122)

(11,209)

(387)

3,507

i. Profit Before Minority Interest

14,146

14,604

4,420

4,414

j.  Minority Interest

(75)

127

107

0

k. Net Profit (Loss Profit)

14,071

14,732

4,527

4,414

Remarks  :  a. In 2004, 2005 & 2006 audited by Dra. Koesbandijah & Partner (Public Accountant)

                   b. 30 June 2007 not yet audited (un-audited)                                                

 

 

 

 

 

 

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions