Review of PT Supreme Cable Manufacturing & Commerce Tbk (IDX:SCCO) Performance in Q1 2023

Performance Review (IDX:SCCO)

PT Supreme Cable Manufacturing & Commerce Tbk (IDX:SCCO)

Tonight, I conducted an update on monitoring the financial statements of companies listed on the Indonesia Stock Exchange. After conducting an initial screening, I came across this IDX: SCCO company.

The criteria I used during the initial screening were as follows:

1. The company has been listed for at least 5 years. SCCO has been listed since July 20, 1982, which means it has been listed for 41 years.
2. Positive equity. The equity is worth 4.8 trillion rupiah.
3. Low liabilities. The total liabilities compared to equity are only about 8%. Financially, the company is very healthy.
4. The company generates profit. The company was able to generate a profit of 104 billion rupiah, although the NPM is only 6%.
5. Net cash flow from operating activities recorded a positive 283 billion rupiah. This means the company has a cash flow surplus, so it doesn't have to worry about running out of cash.
6. Based on the PBV ratio, it shows 0.39x.
7. Based on the Graham Number ratio, it shows a value of 16,414, while the current price is 9,150 (at the time the article was written).

After conducting the initial screening, I proceeded to delve deeper into SCCO.

The company was established on November 9, 1970, and began its initial production of low-voltage electrical cables in 1972. In 1982, the company listed its shares on the Indonesia Stock Exchange and became the first Domestic Direct Investment (PMDN) company to be listed on the Indonesia Stock Exchange.

The shareholders are as follows: PT Moda Sukma holds 69,000,000 shares equivalent to 33.56%. PT Tutulan Sukma holds 61,000,000 shares equivalent to 29.67%. Furukawa Electric Co., Ltd., Japan holds 24,275,640 shares equivalent to 11.81%. The public holds 51,307,760 shares equivalent to 24.96%. In our opinion, the public's ownership of shares is considered reasonable.

The company targets sales of Rp 5.2 trillion and a net profit of Rp 221.9 billion in 2023.

The company's performance in 2023-Q1 recorded sales of Rp 1.7 trillion, while the net profit attributable to the Owners of the Entity reached Rp 104.4 billion. With the current achievements, I believe the company is capable of surpassing the set targets.

Profitability Ratios 2023-Q1

1. GPM = 8,59%
2. OPM = 6,06%
3. NPM = 6,06%
4. ROE = 2,15%

The company has no debt to banks. In my opinion, this is good.

The company's receivables are well maintained, with outstanding receivables amounting to Rp 136 billion. Meanwhile, the overdue receivables that have experienced a decrease in value are only Rp 10.9 billion.

Trade payables amount to Rp 263.1 billion. No collateral has been provided by the Group in relation to trade payables.

In my view, SCCO is an attractive investment option.

Disclaimer on!