VALUATION OF PT. TIGA PILAR SEJAHTERA,TBK : THE IMPACT OF CORPORATE RESTRUCTURING IN 2016
2015 has been a tough year for most of industries because of the slowdown in global economy <br /> <br /> <br /> <br /> which has an impact on the decline in the growth of industries. The condition also affects one <br /> <br /> <br /> <br />...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/24008 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | 2015 has been a tough year for most of industries because of the slowdown in global economy <br />
<br />
<br />
<br />
which has an impact on the decline in the growth of industries. The condition also affects one <br />
<br />
<br />
<br />
of the largest companies that engaged in the food industry, PT. Tiga Pilar Sejahtera <br />
<br />
<br />
<br />
(AISA),Tbk. Since 2014, the company has not only focused on its food products but also <br />
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expanding by entering the agribusiness industry that produce palm oil . After 2 years running <br />
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the business segment of agriculture, the company decided to divest this business segment. It is <br />
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inseparable from the global economic condition in 2015. The decreasing in palm oil demand <br />
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affects the selling price which was also decreasing in that period. This condition forces the <br />
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<br />
company to divest the business segment of agriculture in the 2 <br />
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<br />
nd <br />
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quarter of 2016 so it would <br />
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not distrupt the performance of the parent company. After the divestment, AISA plans to <br />
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focus on its food business segment, especially rice mills by adding new factories to increase <br />
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the production capacity. <br />
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The business issue raised is the necessity to update the the review of AISA’s prospect in the <br />
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future. Throughout 2015, the stock price of AISA was decreasing significantly. As 31 <br />
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December of 2015, the stock price of AISA declined by 41.40% yoy meanwhile the <br />
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composite index recorded the decreased by 11.14% yoy. This is inseparable from negative <br />
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sentiment from the investors to the business segment of agriculture. With the company’s <br />
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restructuring by divesting the business segment of agriculture in May 2016, AISA wants to <br />
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focus on its food business segments,especially rice mills segment which contributed the most <br />
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to AISA’s revenue. <br />
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The analysis is conducted by valuation update using absolute valuation model and relative <br />
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valuation model. For the absolute valuation model, the method used is discounted cash flow <br />
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with free cash flow to firm (FCFF). Meanwhile, the relative valuation model is using price <br />
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earnings ratio (PER) and enterprise value per EBITDA (EV/EBITDA). Both of valuation <br />
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model is used to determine the fair price of AISA stock price. By using those methods, it is <br />
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concluded that the fair price of AISA is IDR 1463.69 with potential upside 21.47% from the <br />
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captured price IDR 1205 (1 <br />
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st <br />
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of August 2017) PER of 12.44 (premium 4.90%) which indicates <br />
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st <br />
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that the AISA’s sentiment in food industry is positive and EV/EBITDA of 8.70 (premium <br />
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9.98%) which indicates that AISA has a better performance compared to its peers companies. <br />
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From the result of the analysis of internal and external of the company and also valuation <br />
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analysis, then the investors are recommended to buy the AISA stock that has a target price of <br />
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IDR 1463.69 with a potential upside of 2.47%. Considering the better internal condition after <br />
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restructuring and the opportunities in the future, AISA overtures the promising prospect to the <br />
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investors. <br />
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