Dec 28, 2010

Astra Graphia to post Rp1.4 trio revenue

Document and IT solution provider PT Astra Graphia Tbk (ASGR) is estimated to book at least 1.5% growth revenue in 2010 of IDR1.4 trillion from last year with 8% compounded annual growth rate from 2010-2014.
In a company report published by PT Pemeringkat Efek Indonesia (Pefindo) published today, the increase in Indonesia economic growth to above 6% in 2010 and recovering purchasing power is expected to support ASGR.
"For 2010 we estimate ASGR to book at least 1.5% YoY revenue growth to reach IDR1.4 trillion and CAGR 8% from 2010-2014," said the report.
With getting modern office document solution technology, many corporate need reliable document solution services, the company which has a good track record and reliable resources will be one big option.
"We estimate ASGR’s revenue growth will still in good figure in 2010, although they book 11.5% YoY decrease in 3Q10, as in the last quarter will be more sales because there are increasing demand from government and private sector as spending of 2010 remaining budget."
Astra Graphia recorded good performance in 3Q10 although its sales decreased by 11.5% YoY, its gross profit reached IDR303.4 billion or a 8,6% increase YoY from 3Q09 figure of IDR279.4 billion. Operating profit in 3Q10 showed even better increases, it reached IDR95.2 billion, raise 13.1% YoY from 3Q09 figure of IDR84.1 billion.
ASGR’s efficiency showed its effect here, they success to reduce its COGS from 70.9% in 3Q09 to 64.3% in 3Q10, so they booked better gross margin of 35.7% compared to 29.1% in 3Q09.
Although there some increases in operating expenses, ASGR still can booked operating income growth above 10% in 3Q10.
Free from Long-term DebtAs they success to improve their margin in 2010, Astra Graphia keeps maintaining it so in 3Q10 they record 11.2% operating margin, comfy above previous years figure of 8.8%.
Also in 2010, ASGR paid their long term debt so there will be lower interest expenses ahead for better net margin.
In 3Q10, the company booked 56.0% YoY net income increase as there is 77% decrease in interest expenses during the period.
The company's net margin is increase from 4.9% in 3Q09 to 8.7% in 3Q10.
With current economic condition, Astra Graphia's net margin could be higher as there are stable exchange rate and lower interest expenses.
Astra Graphia started its journey in 1971 as a Xerox Division of PT Astra International. In line with the rapid business growth, in 1976 the Xerox Division separated itself from PT Astra International and became an independent company, PT Astra Graphia.
Currently, entering its 30th year as an independent company, ASGR focuses on the Document Solution business with Fuji Xerox Co Ltd, as its main principal, a global expert document company with head office in Japan.
The document solution business does not only comprise the photocopy machine business, but has meanwhile transformed alongside the rapid growth of the IT development to emerge as an IT-Based Document Solution provider.
ASGR manages 77 service points at 22 branches throughout Indonesia. With long experiences and numbers of branches, we believe ASGR as one of the biggest document solution provider in Indonesia.

Disclosure: No position at the stock mentioned above. 

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