MIRA INFORM REPORT

 

 

Report Date :

07.12.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. ACE HARDWARE INDONESIA TBK

 

 

Registered Office :

Kawan Lama Building, 5th Floor , Jalan Puri Kencana No. 1, Meruya Kembangan, Jakarta Barat, 11610

 

 

Country :

Indonesia

 

 

Date of Incorporation :

03.02.1995

 

 

Com. Reg. No.:

No. W7-09693 HT.01.04.TH.2007

 

 

Legal Form :

Publicly Listed Company

 

 

Line of Business :

Retailer of Home Improvement Products and Investment Holding

 

 

No. of Employees :

10,362

 

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

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew more than 6% annually in 2010-12. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2013 faces the ongoing challenge of improving Indonesia''s insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of high oil prices

Source : CIA


Name of Company

 

P.T. ACE HARDWARE INDONESIA Tbk

 

A d d r e s s :

Head Office & Showroom

Kawan Lama Building, 5th Floor

Jalan Puri Kencana No. 1

Meruya – Kembangan

Jakarta Barat, 11610

Indonesia

Phone               - (62-21) 582 2222 (Hunting)

Fax                   - (62-21) 582 5588

E-mail               - ask_ace@acehardware.co.id

Website            - www.acehardware.co.id

Building Area     - 6 storey

Factory Space   - 2,000 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

a.   3 February 1995 as P.T. KAWAN LAMA HOME CENTER

b.   28 October 1997 as P.T. ACE INDORITEL PERKAKAS

c.   28 August 2001 as P.T. ACE HARDWARE INDONESIA

d.   29 August 2007 as P.T. ACE HARDWARE INDONESIA Tbk

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-68339.HT.01.04.TH.2001

  Dated 14 September 2001

- No. W7-09693 HT.01.04.TH.2007

  Dated 4 September 2007

 

Company Status :

Private National Company

 

Permit by the Government Department :

The Directorate General of Tax 

NPWP No. 01.721.123.6-035.000

 

The Capital Market Supervisory Board

No. S-995/BEJ-J-PSJ/10-2007

Dated 5 October 2007

 

Related Company :

The KAWAN LAMA Group Members

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 480,000,000,000.-

Issued Capital                                  : Rp. 171,500,000,000.-

Paid up Capital                                : Rp. 171,500,000,000.-

 

Shareholders/Owners :

a. P.T. KAWAN LAMA INTERNUSA                     - Rp. 102,849,000,000.-

b. The NORTHERN TRUST S/A AVFC                  - Rp.   20,280,750,000.-

c. Mr. Kuncoro Wibowo                                      - Rp.            1,000,000.-

d. Public                                                             - Rp.   48,369,250,000.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Retailer of Home Improvement Products

b.   Investment Holding

 

Production Capacity :

Ace Hardware                                  - 88 outlets

 

Total Investment :

Owned Capital                                 - Rp. 480.0 billion

 

Started Operation :

May 1995

 

Brand Name :

Ace Hardware Indonesia

 

Technical Assistance :

ACE HARDWARE of the USA

 

Number of Employee :

10,362 persons

 

Marketing Area :

Domestic    - 100%

 

Main Customers :

a. P.T. GARUDA INDONESIA

b. P.T. P.T. PANARUB INDUSTRY

c. The ASTRA Group

d. The INDOMOBIL Group

e. The KRAMAYUDA Group

f.  Industrial Manufacturing, end users, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. KARYA PRIMA SUPLINDO

b. P.T. CATUR MITRA SEJATI SENTOSA

c. P.T. CATUR SENTOSA ADIPRANA

d. P.T. CATUR KARDA DEPO BANGUNAN

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank PERMATA Tbk

      Jalan Hayam Wuruk No. 84-85

      Jakarta Barat

      Indonesia

b.   P.T. Bank INTERNATIONAL INDONESIA Tbk

      Wisma BII

      Jalan M.H. Thamrin No. 50

      Jakarta Pusat

      Indonesia

 

Auditor :

RSM Aryanto, Amir Jusuf, Mawar & Saptoto

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2009 – Rp. 1,358.8 billion

2010 – Rp. 1,641.1 billion

2011 – Rp. 2,426.4 billion

2012 – Rp. 3,223.3 billion

2013 – Rp. 1,787.3 billion (as per 30 June)

 

Net Profit :

2009 – Rp. 154.4 billion

2010 – Rp. 167.7 billion

2011 – Rp. 279.5 billion

2012 – Rp. 428.8 billion

2013 – Rp. 181.8 billion (as per 30 June)

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Prabowo Widya Krisnadi

Directors                                         - a. Mr. Rudy Hartono

                                                        b. Mr. Hartanto Djasman

                                                        c. Mr. Tarisa Widyakrisnadi

 

Board of Commissioners :

President Commissioner                   - Mr. Kuncoro Wibowo

Commissioners                                - a. Mr. Ijek Widya Krisnadi

                                                        b. Mr. Teddy Hartono Setiawan

                                                        c. Mr. Letjend. TNI (Retired) Tarub

 

Signatories :

President Director (Mr. Prabowo Widya Krisnadi) or one of the Directors (Mr. Rudy Hartono, Mr. Hartanto Djasman or Mr. Tarisa Widyakrisnadi) which must be approved by Board of Commissioners.

 

 

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

 

 

OVERALL PERFORMANCE

 

Originally named P.T. KAWAN LAMA HOME CENTER, it was established in Jakarta based on notary deed of Mr. Benny Kristianto, SH., No. 17 dated 3 February 1995 with authorized capital of Rp. 2,000,000,000 issued capital of Rp. 640,000,000 wholly paid-up. Founders and shareholders are P.T. KAWAN LAMA INTERNUSA and Mr. Kuncoro Wibowo, a Chinese origin Indonesian businessman. The company notary deed has been changed a couple of times. In October 1997, the company was renamed to P.T. ACE INDORITEL PERKAKAS. On the same occasion, the authorized capital was increased to Rp. 10,000,000,000 issued capital to Rp. 7,200,000,000 wholly paid-up. In August 2001, the company renamed again to P.T. ACE HARDWARE INDONESIA. In December 2005, the authorized capital was raised to Rp. 50,000,000,000 of which Rp. 40,000,000,000 was issued and fully paid up. Then in August 2007 the company went go-public by sells of 30.03% shares through Indonesia Stock Exchange (BEI). On this occasion the company was changed to P.T. ACE HARDWARE INDONESIA Tbk (P.T. AHI). The latest in August 2007 the authorized capital was also increased to Rp. 480,000,000,000 issued capital to Rp. 171,500,000,000 entirely paid up. With this time the composition of its shareholders has been changed to become KAWAN LAMA SEJAHTERA (59.97%), The NORTHERN TRUST S/A AVFC (11.83%), Mr. Kuncoro Wibowo (0.00%) and Public (28.20%). The latest revision of notary deed was approved by the Ministry of Law and Human Rights in its decision letter No. W7-09693 HT.01.04.TH.2007 dated September 4, 2007.

 

P.T. AHI is a members company of the KAWAN LAMA Group, a national private business group established by Wang family, a Chinese origin Indonesian business family. They have established P.D. (Perusahaan Dagang) KAWAN LAMA dealing with technical goods trading including hardware and tools. As from 1981, the KAWAN LAMA Group was continued by the second generation, namely Mr. Kuncoro Wibowo (49) and his family members among them are Mr. Ijek Widya Krisnadi (47) and Mr. Prabowo Widyakrisnadi (43). In 1981, the above second generation established P.T. KAWAN LAMA SEJAHTERA (P.T. KLS) known as the continuation of P.D. KAWAN LAMA.

 

P.T. AHI is engaged in retailer of home improvement products including hardware, hand/power tools, electrical, plumbing, lawn and garden, cleaning/paint, automotive parts, building equipment, lock, house wares, pressure equipment, actuators, flanges and others tools. There are some 50 thousand types of hardware products provided by AHI. P.T. AHI is a franchise holder of ACE Hardware, the second largest company in the USA in the field of home improvement products retailer established in 1924. The whole products are imported from the USA, Germany, France, Italy, Japan, South Korea, and other countries. The whole products is also supplied to ASTRA Group, INDOMOBIL Group, KRAMAYUDHA TIGA BERLIAN Group, P.T. GARUDA INDONESIA, P.T. ANEKA TAMBANG, P.T. FREPORT INDONESIA, P.T. TIMAH Tbk, P.T. BUKIT ASAM Tbk, P.T. KALTIM PRIMA COAL, P.T. ADARO INDONESIA, P.T. NEWMONT NUSA TENGGARA, P.T. P.T. TOYOTA MOTOR MANUFACTURING INDONESIA, oil and gas industry, electronic manufacturing, cement industry and ceramic industry and others industries. P.T. AHI started with operation in May 1995 by opening ACE Hardware throughout various Indonesian major cities. At present, P.T. AHI operates 88 outlets spreading in Indonesia. 

 

The Company's scope of activities consist of general trading including export import along with working as agent or distributor. Currently, the Company is engaged as a retailer of household appliances and life style products. As of September 30, 2012 the Company has 88 retail outlets which are located in Jakarta, Tangerang, Bekasi, Cirebon, Bandung, Semarang, Surabaya, Bali, Medan, Batam, Pekan Baru, Palembang, Balikpapan, Makasar, Banjarmasin, Manado and Samarinda.

 

The Premiere Ace Hardware store was inaugurated in Supermal Karawaci Tangerang on 29 November 1995. Today, Ace has develops to be one of the leading home improvement companies with a chain of stores in big cities in Indonesia. Committed to high quality service, Ace Hardware Indonesia is certified for Quality Management System ISO 9001-2000, making the company the first certified hardware store in Indonesia. P.T. ACE HARDWARE INDONESIA has successfully obtained the certificate of ISO 9001 : 2000 (for Quality Management System) with the registration number ID04/0470 on 24 September 2004. With more expanded floor space, wider array of quality home improvement products from all over the world will be developed further to meet fast and growing demand in Indonesian market. Besides, P.T. AHI is also engaged in investment holding by controlling 59.99% shares of P.T. TOYS GAME INDONESIA engaged in industry and trading services. We observe that the operation of P.T. AHI has been growing in the last five years.

 

The demand for technical equipment including hardware, pressure equipment, piping systems, fittings, flanges, actuators, gas compressors, generator and other has kept on rising by 8% to 10% per annum in the last five years. Such condition was in line with the growth of industrial manufacturing, general mining industry sectors like oil and gas, industrial refineries, fertilizer industry, electricity, office building, chemical industry, pharmaceutical industry, food and beverage companies, pulp and paper, cement and other sectors requiring the above products. It is projected that the demand growth will be rising within the next five years. Market competition is very tough on account of many other similar companies operating in Indonesia.

 

Starting in the second semester 2008, many markets in various parts of the world experienced adverse economic condition. This condition was triggered by, amongst others, the housing and mortgage loans crisis in the United States of America (US) that spread to securities, structures products and commodity markets. The volatility in the US markets coupled with the sharp appreciation in the US Dollars and a series of corporate bankruptcies and takeovers enabled the crisis to spread to other parts of the world. The impact of the global economic crisis has also been felt in Indonesia as the Indonesian Rupiah weakened, demand decrease, commodity prices decreased, securities market declines, interest rate increased, followed by decreases, tightened liquidity conditions, and increased credit risks. Up to this time, the Company has not significantly suffered from the economic crisis. In response to these economic events, during 2010 the Company has plans as follows: Negotiation with main customer regarding increasing selling price. Cost reduction in business trip, pantry needs, technical support cost, etc. Reduction finishing cost and transportation cost with transferring product to customers. Improvements of internal production, increasing cycle time and increasing machine running time. In spite of the adverse economic conditions, management believes that the Company will be able to continue operating as going concern for the foreseeable future.

 

According to financial statement which audited by RSM Aryanto Jusuf, Mawar & Saptoto, Public Accountant that sales turnover of P.T. AHI in 2009 amounted to Rp. 1,358.8 billion with a net profit of Rp. 154.4 billion rose to Rp. 1,641.1 billion with a net profit of Rp. 167.7 billion in 2010 increased to Rp. 2,426.4 billion with a net profit of Rp. 279.5 billion in 2011 increased to Rp. 3,223.3 billion with a net profit of Rp. 428.8 billion in 2012. As per 30 June 2013 the sales turnover was amounted at Rp. 1,787.3 billion with a net profit of Rp. 181.8 billion. It is projected the sales turnover will be higher by at least 5% in 2014. We observe that P.T. AHI is supported by the KAWAN LAMA Group with has financially strong and sound behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers. The condense financial statement is shown.

 

                                                                                                                                 (In million Rp)

 

Descriptions

30 June 2013

31 December

2012

2011

2010

A.  ASSETS

 

 

 

 

a. Current Assets

1.314.223

1.218.820

846.867

862.190

b. Non Current Assets

704.416

698.094

604.888

335.814

c. Other Assets

73.411

51.486

59.081

38.281

TOTAL ASSETS = TOTAL

LIABILITIES & EQUITY

2.018.639

1.916.915

1.451.755

1.198.004

B. LIABILITIES

    &STOCKHOLDERS EQUITY

 

 

 

 

a. Current Liabilities

271.920

208.255

166.524

136.993

b. Non Current Liabilities

389.719

298.914

53.358

36.437

c. Stockholders Equity :

-          Paid Up Capital

-          Additional Paid Up Capital

-          Retained Earnings

Total Stock holders Equity

 

171.500

368.122

1.075.568

1.628.920

 

171.500

368.122

1.061.206

1.618.001

 

171.500

368.122

667.024

1.231.874

 

171.500

368.122

470.503

1.024.574

C. INCOME STATEMENT

 

 

 

 

a. Sales Net

1.787.342

3.223.291

2.426.438

1.641.122

b. Operating Profit

237.289

562.490

370.866

220.006

c. Net Profit (loss)

181.806

428.849

279.505

167.668

Notes: 31 December 2010, 2011, 2012 Audited by RSM Aryanto Jusuf, Mawar & Saptoto

As per 30 June 2013 un audited

 

The management of P.T. AHI is led by Mr. Prabowo Widya Krisnadi (56) a businessman with 25 years of experience in the trading and distribution of tools, machineries and industrial equipment. Daily operation, he is assisted by three directors namely Mr. Rudy Hartono (55), Mr. Hartanto Djasman (55) and Mr. Tarisa Widyakrisnadi 49) as Directors. The company's management is handled by professional managers in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. ACE HARDWARE INDONESIA Tbk is sufficiently fairly good for business transaction.

 

 

The KAWAN LAMA Group Members

 

1.       ACE HARDWARE INDONESIA Tbk, P.T. (Trading and distribution of hardware and tools)

  1. DECOUROUS MITRA SELARAS, P.T. (Trading and distribution of tools and technical Goods)
  2. FASTTOOLINDO KRISNALESTARI,  P.T. (Trading and distribution of tools and technical goods)
  3. HOME CENTER INDONESIA, P.T. (Trading and distribution of furniture products)
  4. INDO KOMPRESIGMA SISTEM, P.T. (Trading and distribution of air compressor)
  5. KALDEN MULTI REKATAMA, P.T. (Trading and distribution of technical goods)
  6. KAWAN LAMA INTERNUSA, P.T. (Investment holding)
  7. KAWAN LAMA MULTI AKURASI, P.T. (Trading and distribution of measurement products)
  8. KAWAN LAMA MULTI SISTEMINDO, P.T. (Trading and distribution of storage system)
  9. KAWAN LAMA SEJAHTERA, P.T. (Trading and distribution of technical goods)
  10. MULTIPERKAKAS KRISNALESTARI, P.T. (Trading and distribution of tools)
  11. MULTISESINDO SELARAS, P.T. (Trading and distribution of technical goods)
  12. MULTISTORAGE SISTEMINDO, P.T. (Trading and distribution of storage systems)
  13. TOYS GAME INDONESIA, P.T. (Trading and Distribution of Toys)
  14. Etc.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.66

UK Pound

1

Rs.100.64

Euro

1

Rs.84.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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

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

--

NB

                                       New Business

 

--

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.