Company Commentary of SGRO

PT Sampoerna Agro, Tbk - September 07, 2009

Debt refinancing cuts
financial charges forthcoming years

SGRO's subsidiary, Sungai Rangit, was granted by lender for the loan in the amount of IDR 300 billion. The interest bearing to the loan deal was 12% which contains of two tranches. Trache A comprises of IDR 215 loan and matures for almost five and half years from August 21st, 2009.

The other tranche, Tranche B, is a credit facility worth of IDR 85 billion. The company may exercise its facility of IDR 30 billion this year, another IDR 30 billion in next year and the rest by 2011 in the amount of IDR 25 billion. Lender applied 12% financial charge upon the loan once the company draws the facility.

SGRO's old loan agreement bore 13% interest expense for IDR 215 billion debt, in our account. Therefore the refinancing, where new lender applied 12% credit loan interest, SGRO will enable to lower loan charges to IDR 26 billion this year and years ahead with no additional loan scenario.

The refinancing will result a bit change on our SGRO projection for the forthcoming years, especially if SGRO withdrew the facility. We construct SGRO projection based whether or not the company exercising the credit facility and SGRO financial projection with old loan agreement.


The old loan agreement has a 13% interest rate credit for loan valued of IDR 215 billion. In our view, the old loan interest credit rate would entail SGRO as much as IDR 27.7 billion by the end of 2009F. The story would change a bit with new loan interest charge.

Other consequence of the new loan is that SGRO would possess higher amount of liabilities, if the company additional debt is necessary to finance business expansion. As we mentioned above that SGRO has credit facility for the amount of IDR 85 billion. Company's capital structure differs with new debt inflows which our fair value per share may be altered as well.

We remain to use discounted cash flow to evaluate SGRO fair value per share with revision from previously12% risk free rate to 10.52%, 7.23% country risk premium and 1.2x beta factor. The scenarios resulting two different target prices.



SGRO Price Target with Scenarios
Old Loan Agreement ............................................... 2800
New Loan Agreement with no Additional Loan....... 2800
New Loan Agreement with Additional Loan .............2100

As SGRO signed new loan contract and soon enough repay the loan to lender and has not yet withdrawn credit facility, thus after discounted cash flow method calculation we came out with IDR 2800 as our new target price. This new target price was revising our previous target price of IDR 2700.

The comparison valuation among companies in the same industry shows SGRO is the most attractive stock than others whereas SGRO PER 09F is below PER 09F of average industry and by Enterprise value per Ha as well. We therefore remain to recommend BUY for SGRO with target price of IDR 2800.

PENGAMAT: BI HARUS AWASI PENGUASAAN SAHAM ASING

Pengamat ekonomi dari Universitas Gajah Mada (UGM), Sri Adiningsih PhD, mengatakan, Bank Indonesia (BI) sebagai otoritas moneter di Indonesia harus mengawasi penguasaan saham asing, khususnya di bidang perbankan.

Jakarta, 16/5 (Roll News) - Pengamat ekonomi dari Universitas Gajah Mada (UGM), Sri Adiningsih PhD, mengatakan, Bank Indonesia (BI) sebagai otoritas moneter di Indonesia harus mengawasi penguasaan saham asing, khususnya di bidang perbankan.

Sri saat dihubungi di Jakarta, Selasa, mengatakan, BI harus memiliki kewenangan untuk mengatur dan mengawasi regulasi sehingga tetap mampu menekan dan mengendalikan kondisi ekonomi di dalam negeri.

"Asalkan kewenangan BI dalam mengawasi tidak berkurang, hal tersebut tidak menjadi masalah walaupun penguasaan kepemilikan di bidang perbankan dikendalikan asing," ujarnya.

Dengan sistem yang sekarang ini, ia menambahkan, memang memiliki kekurangan dalam segi bisnis, segi operasional dan adanya kebebasan-kebebasan dari regulasi.

"Oleh karena itu, penegakan hukum (law enforcement) harus tetap ditegakkan dan regulasi tersebut harus benar-benar dilaksanakan agar sistem ini tetap berjalan," ujarnya.

Sri juga mengatakan, selama masih ada Lembaga Penjamin Simpanan (LPS) dan lembaga perbankan menjadi anggotanya, maka simpanan milik nasabah masih dapat terjamin andaikata krisis ekonomi yang terjadi makin memburuk.

LPS sendiri terbentuk melalui UU nomor 10 tahun 1998 tentang perbankan yang mengamanatkan pembentukan suatu institusi sebagai pelaksana penjaminan dana masyarakat.

Sebelumnya, pada Senin (15/6), pengamat ekonomi dari Universitas Indonesia, Faisal Basri, mengatakan, sangat wajar banyak saham di perbankan yang dikuasai asing karena masih banyak masyarakat Indonesia yang masih ragu untuk menanamkan sahamnya di pasar saham.

"Ini terjadi karena tidak ada perlindungan, tidak ada sanksi yang tegas terhadap regulasi yang ada," ujarnya.

Ia menambahkan telah banyak kejahatan dan pelanggaran di pasar saham namun pelakunya bebas dari hukuman sehingga banyak masyarakat menjadi takut untuk menanamkan sahamnya. (sumber : FINROLLNews)