One of radial-car tire producer, PT Multistrada Arah Sarana Tbk (MASA), finally appointed HongKong and Shanghai Banking Corporation Limited (HSBC) as its financial adviser for a period of 12 months.
Even Goh, Head of Investor Relations of Multistrada, confirmed HSBC in the near future will review the tire producer strategically.
“HSBC will provide several best options for the company. The options are on looking for strategic partners, expanding business, and escalating output,” he said when called by Bisnis, this afternoon. According to him, the company expects several options within of next 1-2 months following the appointment of HSBC.
“Totally, the options are estimated to advance a value of company and shareholder,” Even said. He confirmed that before appointing HSBC, Multistrada had selected several foreign investment banks such as ING and Macquarie Securities.
However, the mandate went to HSBC because of its division in Hong Kong focusing on automotive industry including tire business. “Therefore, we are totally sure for HSBC to be more competent in providing input,” he said.
The appointment is also in line with Multistrada's business which is focusing in the export market. Today, as he said, Multistrada, producer of Achilles, Strada, and Corsa tire, is still undervalued.
Another tire maker PT Gajah Tunggal Tbk (GJTL) has lower price to earning ratio than Multistrada. However, in a term of financial structure, as he said, Multistrada is healthier and has higher margin. In the end of 2010, Multistrada booked sales of IDR2.01 trillion or a 18.64% growth from IDR1.68 trillion in 2009. And now, the tire producer targets for sale to IDR3.15 trillion this year.
Meanwhile, last year’s net income climbed 0.69% to IDR176.08 billion from IDR174.86 billion. Then, Multistrada’s operating income grew by 11.32% to IDR256.96 billion from IDR230.82 billion. On the other hand, its operating margin fell to 12.80% from 13.65%.
Disclosure: No position at the stock mentioned above.
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