Review of PT Wilmar Cahaya Indonesia Tbk (IDX:CEKA) Performance in Q2 - 2023

Review of PT Wilmar Cahaya Indonesia Tbk (IDX:CEKA)

(CEKA) has achieved net sales of Rp 3 trillion until 2023-Q2 or the period ending on June 30th.

Nusantarainvestasi.com - PT Wilmar Cahaya Indonesia Tbk, a listed company, has achieved net sales of Rp 3 trillion until the first semester of 2023 or the period ending on June 30th. This indicates a decline in performance compared to the same period in 2023, which was Rp 3.6 trillion.

The cost of goods sold and revenue is recorded at Rp 2.8 trillion compared to the previous period of Rp 3.3 trillion, resulting in a gross profit of Rp 185 billion, down from Rp 310 billion.

The pre-tax loss is Rp 92 billion, while in 2022-Q2 it was Rp 231 billion.

The loss from continuing operations amounts to Rp 72.2 billion, while in the previous year it was Rp 180 billion.

The net profit attributable to the parent entity is Rp 72.2 billion, compared to Rp 180 billion in the previous year.

The company does not have any debt to banks. During the presentation of the 2023-Q2 report, the company also mentioned an increase in liabilities amounting to Rp 270 billion or 160.86% from the liabilities recorded on December 31, 2022, which was Rp 168 billion. This increase consists of accounts payable to related parties amounting to Rp 253.3 billion due to commodity purchases in May and June 2023. The increase in accounts payable to third parties is Rp 16.4 billion due to an increase in commodity purchases from third parties.

The equity amount is Rp 1.5 trillion.

The net cash flow from operating activities is recorded at a positive Rp 138.4 billion.

Based on the results of the 2023 Public Expose, it is evident that :

1. The company does not own oil palm plantations. It only has processing plants for converting Crude Palm Oil (CPO) and Palm Kernel (PK) into cooking oil and specialty vegetable oils.
2. The company does not export CPO, but it exports specialty vegetable oil food products to Vietnam, Thailand, the Netherlands, and China.
3. The company operates two plants located in Cikarang – Bekasi and Pontianak – West Kalimantan.
4. Waste processing is carried out through efforts of reducing, reusing, recycling, and replacing (4R). This process is supported by monitoring and recording waste balances for each business unit, both in terms of volume and compliance with quality standards. Waste generated from the plants is separated into hazardous and non-hazardous waste in temporary storage facilities. The waste is then collected and processed by licensed contractors in accordance with applicable regulations.

Profitability Ratios:

1. GPM = 6,1%
2. OPM = 3,0%
3. NPM = 2,4%

Valuation:

1. PBV (Price-to-Book Value) = 0.74x
2. PER (Price-to-Earnings Ratio) = 7.94x
3. Stock Price = 1,930
4. Graham Number = 2,679
5. Book Value = 2,627

According to me, CEKA is worth collecting.

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