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MIRA INFORM REPORT
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Report No. : |
503700 |
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Report Date : |
19.04.2018 |
IDENTIFICATION DETAILS
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Name : |
PT. SRI REJEKI ISMAN TBK |
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Formerly Known As : |
·
PT. SRI REDJEKI [22 May 1978] ·
PT. SRI REDJEKI ISMAN [24 September 1981] ·
PT. SRI REJEKI ISMAN
[02 July 1991] |
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Registered Office : |
Jl. KH Samanhudi No. 88, RT. 004, RW. 006,
Kelurahan Jetis, Kecamatan Sukoharjo, Kab. Sukoharjo 57511, Jawa Tengah |
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Country : |
Indonesia |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
22.05.1978 |
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Com. Reg. No.: |
AHU-AH-01.03-0143857 |
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Legal Form : |
Public Listed Company or Terbuka (TBK) |
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Line of Business : |
·
Manufacture of textiles · Manufacture of wearing apparel · Financial service activities, except insurance and pension funding |
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No. of Employees : |
·
Per 31 December 2016 ·
Per 30 September 2017 ·
Per 31 December 2017 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Indonesia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
INDONESIA - ECONOMIC OVERVIEW
Indonesia, the largest economy in Southeast Asia, has seen a slowdown in
growth since 2012, mostly due to the end of the commodities export boom. During
the global financial crisis, Indonesia outperformed its regional neighbors and
joined China and India as the only G20 members posting growth. Indonesia’s
annual budget deficit is capped at 3% of GDP, and the Government of Indonesia
lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian
financial crisis in 1999 to 33% today. While Fitch and Moody's Investors
upgraded Indonesia's credit rating to investment grade in December 2011,
Standard & Poor’s has yet to raise Indonesia’s rating to this status amid
several constraints to foreign direct investment in the country, such as a high
level of protectionism.
Indonesia still struggles with poverty and unemployment, inadequate
infrastructure, corruption, a complex regulatory environment, and unequal
resource distribution among its regions. President Joko WIDODO - elected in
July 2014 – seeks to develop Indonesia’s maritime resources and pursue other
infrastructure development, including significantly increasing its electrical
power generation capacity. Fuel subsidies were significantly reduced in early
2015, a move which has helped the government redirect its spending to
development priorities. Indonesia, with the nine other ASEAN members, will
continue to move towards participation in the ASEAN Economic Community, though
full implementation of economic integration has not yet materialized.
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Source
: CIA |
COMPANY
IDENTIFICATION
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Company Name |
PT. SRI REJEKI ISMAN TBK ( PREVIOUS NAME :
PT. SRI REJEKI ISMAN ) ( TRADING NAME : SRITEX ) |
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Address |
Jl. KH Samanhudi
No. 88, RT. 004, RW. 006 |
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Telephone |
+62271593188, +62271648736, +62271648936 |
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Fax |
+62271593488, +62271591788, +62271593693 |
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Email |
cmo@sritex.co.id |
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Web |
www.sritex.co.id |
PROFILE
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Address |
Jl. KH Samanhudi No. 88, RT. 004, RW. 006 |
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Office Building |
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Date of Establishment |
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Start Operation |
1979 |
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Legal Status |
Public Listed Company or Terbuka (Tbk) |
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Legalization (historical) |
No. C2-1830.HT.01.01.TH.82 |
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Government Permit (s) |
Direktorat Jenderal Pajak |
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Significant change |
Formerly named PT. Sri Redjeki, the Company was established in
Surakarta-Central Java on May 22, 1978, with the authorized capital of IDR
200 million, issued and paid up capital of IDR 40 million. Its initial
shareholder structure consisted of Mr. Isman Djianto (50.0%) and Mr. Lukminto
(50.0%). On September 24, 1981, the Company was renamed, being: PT. Sri Redjeki
Isman. On the same occasion, the Company’s capitalization and shareholder
structure changed. Its authorized capital became IDR 4 billion, with issued
and paid up capital of IDR 1 billion. Meanwhile, the Company’s shareholder
structure changed, to consist of Mr. Isman Djianto (20.0%), Mr. Lukminto
(20.0%), Mr. Suradi (15.0%), Mr. Suyatno (10.0%), Mr. Suwarno (10.0%), Mr.
Wiryoatmodjo (15.0%), and Mr. Arif Halim (5.0%). On July 2, 1991, the Company was again renamed, being PT. Sri Rejeki
Isman. Up to the completion of this report, however, we are unable to obtain
the revision act concerning the changing name; so that we cannot show you details
about the content of the revision act. On June 3, 2009, the notarial act of the Company was changing. As
written on that change, the Company’s authorized capital was IDR 1,000
billion, with issued and paid up capital of IDR 290 billion. Meanwhile, its
shareholder structure consisted of Estrada Trading Limited (88.23221%), Mr.
Muhammad Lukminto (11.75778%) and Mr. Arief Halim (00.00001%). In April 2011, the Company’s shareholder structure changed, to consist
of Estrada Trading Limited of British Virgin Island (88.2%), and Mr. Muhammad
Lukminto of Indonesia (11.8%). Meanwhile, its capitalization structure
remained unchanged. On March 4, 2013, the Company became a public company and began to
list its shares in Indonesia Stock Exchange. Being a public listed company,
then, a name of the Company changed to become PT. Sri Rejeki Isman Tbk (the
Company). On February 5, 2014, Mr. H.M Lukminto passed away. Due to the fact, we
believe, the Company’s shareholder structure has changed. Based on financial statement per September 30, 2014, authorized
capital of the Company was increased to IDR 5,000,000,000,000, with issued
and paid up capital of IDR 1,859,288,804,000. Meanwhile, shareholders of the
Company consisted of PT. Huddleston Indonesia (56.07%), Public (43.88%), and
Mr. H.M Lukminto (the Late) (0.05%). Based on financial statement per March 31, 2015, shareholder structure
of the Company changed, to consist of PT. Huddleston Indonesia (56.07%),
Public (37.82%), Mr. H.M Lukminto (the Late) (0.05%), and PT. Prudential Life
Assurance (6.06%). Meanwhile, capitalization structure of the Company
remained the same. Based on financial statement per June 30, 2015, shareholder structure
of the Company changed, to consist of PT. Huddleston Indonesia (56.07%), Public
(36.06%), Mr. H.M Lukminto (the Late) (0.05%), and PT. Prudential Life
Assurance (7.82%). Meanwhile, capitalization structure of the Company
remained the same. Based on financial statement per June 30, 2016, shareholder structure
of the Company changed, to consist of PT. Huddleston Indonesia (56.07%), PT.
Prudential Life Assurance (8.20%), Ms. Susyana Lukminto (0.03%), Public
(35.68%), Ms. Vonny Imelda Lukminto (0.00%), Mr. Iwan Setiawan (0.00%), Mr.
Lenny Imelda Lukminto (0.00%), Mr. Iwan Kurniawan Lukminto (0.00%) and Ms.
Margaret Imelda Lukminto (0.00%). Meanwhile, capitalization structure of the
Company remained the same Based on financial statement the Company per March 31, 2017,
shareholder structure of the Company changed again, to consist of PT. Huddleston
Indonesia (56.071%), Ms. Susyana Lukminto (0.028%), Mr. Iwan Setiawan
Lukminto (0.004%), Mr. Iwan Kurniawan Lukminto (0.004%), Ms. Vonny Imelda
Lukminto (0.004%), Ms. Lenny Imelda Lukminto (0.004%), Ms. Margaret Imelda
Lukminto (0.004%), Public of PT. Sri Rejeki Isman Tbk (43.881%). Meanwhile,
capitalization structure of the Company remained the same. Per June 30, 2017, there has been no change in the Company's
capitalization and shareholder structures. Per September 30, 2017, there has been no change in the Company's
capitalization and shareholder structures. Per December 31, 2017, the Company's capitalization structure remains
unchanged. The Company's shareholders changed into PT. Huddleston
Indonesia (60.065%), Ms. Susyana Lukminto (0.025%), Mr. Iwan Setiawan
Lukminto (0.004%), Mr. Iwan Kurniawan Lukminto (0.004%), Ms. Vonny Imelda
Lukminto (0.004%), Ms. Lenny Imelda Lukminto (0.004%), Ms. Margaret Imelda
Lukminto (0.004%), Public of PT. Sri Rejeki Isman Tbk (39.892%). |
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Capitalization |
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SHAREHOLDERS
& MANAGEMENT
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Shareholders |
Total No. of Shareholders: 8 |
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Name of Shareholders |
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Management Board |
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Name |
Mr. Iwan Setiawan Lukminto |
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Position |
President Director |
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Nationality |
Indonesian |
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Name |
Mr. Iwan Kurniawan Lukminto |
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Position |
Vice of President Director |
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Nationality |
Indonesian |
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Name |
Mr. Allan Moran Severino |
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Position |
Finance Director |
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Nationality |
Indonesian |
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Name |
Mr. Arief Halim |
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Position |
Marketing Director |
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Nationality |
Indonesian |
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Name |
Mr. Karunakaran Ramamoorthy |
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Position |
Production Director |
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Nationality |
Indian |
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Name |
Mr. Eddy Prasetyo Halim |
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Position |
Operational Director |
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Nationality |
Indonesian |
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Name |
Mr. M. Nasir Tamara Tamimi |
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Position |
Independent Director |
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Nationality |
Indonesian |
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Name |
Mr. Welly Salam |
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Position |
Corporate Secretary |
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Nationality |
Indonesian |
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Supervisory Board |
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Name |
Ms. Susyana Lukminto |
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Position |
President Commissioner |
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Nationality |
Indonesian |
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Name |
Ms. Megawati |
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Position |
Commissioner |
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Nationality |
Indonesian |
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Name |
Mr. Sudjarwadi |
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Position |
Independent Commissioner |
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Nationality |
Indonesian |
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Management Assessment |
The management is deemed to have sufficient experience and industry
expertise to manage subject properly. |
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Authorized Signatories |
Mr. Iwan Setiawan Lukminto as President Director and Mr. Iwan Kurniawan
Lukminto as Vice of President Director and Mr. Allan Moran Severino, Mr.
Arief Halim, Mr. Karunakaran Ramamoorthy, Mr. Eddy Prasetyo Halim and Mr. M.
Nasir Tamara Tamimi as Directors and Mr. Welly Salam as Corporate Secretary
of the Company which must be approved by shareholders meeting. |
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Affiliate (s) / Associate (s) |
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KEY
DATA ON OPERATIONS
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Registered Activities |
SIC Code 13 : Manufacture of textiles |
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Employee |
Per 31 December
2016 |
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Business Category |
SIC Code 13.1 : Preparation and spinning of
textile fibres |
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Line of Business |
SIC Code 13.10 : Preparation and spinning
of textile fibres |
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Product & Capacity |
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Status of Investment |
Non-facilities based Company |
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Sales Territory |
Local |
47% |
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International |
53% |
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Main Items Imported |
Machinery and Equipment |
Hong Kong |
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Main Items Exported |
Garment Products |
USA |
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Major Customers |
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Major Supplier |
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Terms of Payment |
Purchase Payment |
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Activity Comment |
Began the operation in 1979, PT. Sri Rejeki Isman Tbk
(the Company) is a non-facilities based company that is engaged in Integrated
Textile Industry. Head office, factory, and registered address of the Company
are located in a commercial area, precisely at Jl. KH Samanhudi No. 88, RT.
004, RW. 006, Kelurahan Jetis, Kecamatan Sukoharjo, Kab. Sukoharjo 57511,
Jawa Tengah - Indonesia. We believe this location belongs to the Company. Unfortunately, we cannot confirm the
contact number on the order sheet, which are +62271632825, +62271635152, and
+62271647800. We also cannot confirm these fax numbers: +62271648932,
+62271645958, +62271648726, +6227125397. In addition, the head office is supported
by 3 branch offices, which are located each in Jakarta Pusat precisely at Jl.
KH. Wahid Hasyim 147, Kelurahan Kebon Kacang, Kecamatan Tanah Abang, Kota
Jakarta Pusat 10240, DKI Jakarta – Indonesia, in Surabaya precisely at Jl.
Slompretan 117, Kelurahan Bongkaran, Kecamatan Pabean Cantikan, Kota Surabaya
60161, Jawa Timur - Indonesia, and in South Jakarta precisely at The Energy
Building Lantai 20, Jl. Jendral Sudirman Kav. 52-53 Lot 11A, SCBD, Kelurahan
Senayan, Kecamatan Kebayoran Baru, Kota Jakarta Selatan 12190, DKI Jakarta –
Indonesia. The Company is a public listed company
that is engaged in the textile industry and is the largest textile factory in
Indonesia. The Company produces 636,000 dozens per year of Garment Products,
160,000,000 meters/year of weaving yarn, 102,695,040 kgs/year of spinning
yarn, 120,000,000 yards/year of Finishing/Dyeing/Printing fabrics and
14,000,000 pieces of a year of clothes. Types of the garment products are, among
other: multi-purpose tents, bedding (bed sheets, pillowcase, blanket),
towels, sleeping bags, traveling bags, helmet cover, hats, and footwear. For its operation, the Company is supported
by local and overseas suppliers. Some of local suppliers of the Company are
PT. Sari Warna Asli Textile Industry, PT. Senang Kharisma Textile, PT. Sri
Wahana Adityakarta, PT. Citra Busana Semesta, PT. Dasar Rukun, and PT. Sinar
Central Sandang. The Company’s products are not only made
for the domestic market but are also made based on orders from overseas
buyers such as JC PENNY, SEARS, WAL-MART, TIMBERLAND, GUESS, QUICKSILVER,
GYMBOREE, CHARLES VOGELE, OKAIDI, ZARA, etc. These buyers are, among other,
from the USA, Germany, United Kingdom, Austria, Sweden, Netherlands, Norway,
Greece, Suriname, Oman, United Arab Emirates, Kuwait, Saudi Arabia,
Philippines, Cambodia, Brunei Darussalam, Papua New Guinea, and Cambodia.. The Company also supplies military
uniforms for all NATO members (18 countries), and for several other
countries. In the other hand, the Company also has won tender in the
manufacture of Kosovo military uniforms. However, the Company is not willing
to explain in detail about the sale of these products. Meanwhile, the Company will immediately
build a factory in Cambodia as a form of cooperation between the Company and
the Ministry of Internal Affairs of Cambodia. Both sides agreed to form a new
company, Sritex (Cambodia) Ltd which will be tasked to carry out the supply
or purchase of uniforms for the police in Cambodia. To that end, Sritex
(Cambodia) Ltd is also assigned to establish a garment factory in Cambodia.
The cooperation of garment factory development is actually a follow-up of the
outcome of talks between the RI President and the Prime Minister of Cambodia
on the sidelines of a series of activities of the Asia-Africa Conference in
2015. The Cambodian government has expressed a commitment to purchase police
uniforms manufactured by the Company in Indonesia prior to the establishment
of a new garment factory in Cambodia. Moreover, the Company is exploring the
sales of military uniforms to Cambodia as much as 100 thousand pairs, shirts
and pants. In 2017, construction of the Company’s factory in Cambodia is
still under assessment phase. In 2016, the Company booked significant
increase in sales and profits. The Company’s sales grew by 7.7%. As result,
the Company’s profits grew by 6.6% from 2015. In 2016, the Company also took expansion
of production capacity step by step to meet the increasing demand from the
customers along the year 2016. For the spinning division, the company took
production expansion, from 566,000 bales to 654,000 bales. For the finishing
division, the Company expanded the capacity from 120 million yards to 240
million yards that started in midyear 2017. Meanwhile, production capacity of
the weaving division expanded from 120 million-140 million meters of raw
fabrics to 180 million meters of raw fabrics in midyear 2017. Through the
expansion, the Company has expanded production capacity of ready-to-wear
cloths from 18 million to 23 million pieces. Per December 31, 2017, the Company booked
sales of USD 759,349,865 or increased by 11.68% from USD 679,939,490 in 2016.
The Company's cost of revenue was amounted to USD 588,079,100 or increased by
10.01% from USD 534,588,503 so the Company can record a 17.83% increased in
gross profit to USD 171,270,765 compared to 2016 USD 145,350,987. As a
result, net income of the Company increased by 14.60% into USD 68,035,320
from USD 59,365,690 in 2016. Based on the Company's segment division,
the Company is divided into spinning, weaving, finishing, and garment
segments. The performance as of December 31, 2017 are as follows: - Spinning segment contributed USD
292,372,820 or 38.50% to total revenue. - Weaving segment contributed USD
74,141,086 or 9.76% to total revenue. - Finishing segment contributed USD
193,722,827 or 25.51% to total revenue. - Garment segment contributed USD 199,113,132
or 26.22% to total revenue. In addition, the Company has negative
operating and investing cash flows, and positive financing cash flow per
December 31, 2017. Not only as textile manufacturer, the
Company also owns two direct subsidiaries. Those are PT. Sinar Pantja Djaja,
with ownership of 99.9% and Golden Legacy Pte. Ltd. of Singapore, with
ownership 100%. In 2018, the Company targets to expand its
market to China. Based on other sources, we found that on February 2018, the
Company acquires PT. Bitratex Industries and PT. Primayudha Mandirijaya with
total investment USD 85 million in cash and USD 55 million in credit
term. Moody's Investors Service estimates that the Company's margin in
2018 will drop between 100 and 200 basis points as the focus of the two new
companies is on a lower-margin yarn business compared to the Company's higher
garment and cloth business. Furthermore, Moody's Investors Service
improved the Company's corporate rank rating (CFR) to Ba3 from B1 with a
stable outlook. In addition, the Company received ISO
9001-2000 for its products. Moreover, the Company also received Investor
Awards 2016. |
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Litigation |
At the time this report is written, this
Company has not been involved in any criminal or civil cases. This statement is
based on a result of search for cases conducted at the State Court in the
area, where the Company was established and operates today. |
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Sources |
Financial Statement of the Company. |
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Branch Address |
Branch Address 1
: |
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Factory and Registered Address |
Jl. KH Samanhudi No. 88, RT. 004, RW. 006 |
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BANKING
INFORMATION
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Banker (s) |
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Insurance |
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BUSINESS
PROSPECTS
|
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Business Prospects The Ministry of Industry stated that the textile
and textile products (TPT) industries have great potential to grow and
develop in the future. Based on the National Industrial Development Master
Plan (RIPIN) in 2015-2035, this sector is prioritized in its development in
order to be able to contribute significantly to the national economic growth. The textile industry operating in Indonesia has been integrated with
classification in three areas. First, the upstream sector is dominated to
produce fiber products. Second, the intermediate sector is the companies
whose production processes include spinning, knitting, weaving, dyeing,
printing and finishing. Third, the downstream sector in the form of garment
factories and other textile products. With this, the Ministry of Industry
estimates that textile industry exports will grow an average of 11% per year. In 2018, the target is pegged at USD 13.5 billion from 2017 target of
USD 12.09 billion. On the employment side, by 2018 it is expected that this
sector will absorb around 2.95 million people and by the end of this year
there are 2.73 million people. The Ministry of Industry targets by 2019 the
growth rate of TPT industry will increase by 3.56% with the value of textile
industry exports valued at USD 15 billion and absorb the workforce of 3.11
million people. Based on the increasing growth in textile industry, we believe the
Company has prospective business. |
FINANCIAL
STATEMENT
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Financial Data |
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CREDITWORTHINESS
|
|
Management Capability |
Good |
|
Business Morality |
Adequate |
|
Payment Manner |
Regular |
|
Financial Condition |
Sound |
|
Operating Trend |
Up |
|
Conclusive remarks |
Based on the above information, it can be seen that the Company has
been engaged in textile industry since 1979. In its operation, the Company’s
products are not only made for domestic market but also made based on job
orders from overseas buyers, such as from the USA, Germany, United Kingdom,
Austria, Sweden, Netherlands, Norway, Greece, Suriname, Oman, United Arab
Emirates, Kuwait, Saudi Arabia, Philippines, Cambodia, Brunei Darussalam,
Papua New Guinea, Cambodia, etc. As we learned, the Company recorded a significant increase
of sales and profits in 2016 and 2017. In terms of cash flow, the
Company has negative operating and investing cash flows, which indicates
that the Company needs third parties to operate the business. However, the
financing cash flow was positive. Meanwhile, in term of analysis ratio, the Company has low capability
to cover the current liabilities using the current assets. The Company has a
high debt to equity ratio, which reflects that capital owned by the Company
cannot cover the overall debts. Yet, the Company is able to cover the debts
using the assets. The Company has longer receivable flow than the payable, so
the Company has to cover the payment using its resources first before
receiving from customers. Nevertheless, the Company is able to earn positive
return from its assets and equity. In another side, with the positive growth in textile industry in
the following years, we believe the Company has promising business.
Furthermore, one of investor services increased the Company's rating in 2018.
Based on those reasons, we classify the Company’s credit rating at
"Medium to Low Risk" rate. For security reason, we advise those wishing to cooperate with or
grant loans to this Company to keep asking for adequate collateral from
shareholders. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.68 |
|
|
1 |
INR 93.98 |
|
Euro |
1 |
INR 81.30 |
|
IDR |
1 |
INR 0.0048 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIY |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.