STRATEGIC ANALYSIS AND COMPANY VALUATION OF PT MODERN INTERNASIONAL TBK

• Main Author: TANIA 29116235, ARIANE
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25746
• Institution: Institut Teknologi Bandung

PT Modern Internasional Tbk is a public listed company at Indonesia Stock Exchange that has three subsidiaries business activities in convenience stores segment, medical imaging segment, and IT solutions segment. The company’s sales highly depend on 7-Eleven convenience stores which contribute 75.7% of total sales. In the middle of 2017, the company forced to close all of its convenience stores segment due to the significant losses of sales performance. The closure of 7-Eleven as an end-strategy was chosen as the company failed to close a deal to sell the ailing business to PT Charoen Pokphand Restu Indonesia Tbk with a selling price of Rp 1 trillion. The strategic analysis is conducted to prove whether the company strategy to close its business in convenience stores was appropriate or not. Based on QSPM matrix, the company strategy to close all 7-Eleven stores was an appropriate strategy due to financial difficulties, government regulations, and competition among competitors. <br /> <br /> <br /> In addition to restructuring all its debt obligation, the company focuses on developing its business in digital printing. The further of company valuation is conducted to analyze the value of equity after the closure of 7-Eleven stores using Discounted Cash Flow (DCF) model over 10 years. The result found that if the company’s restructuring and consolidation efforts will be successful, the value of the firm will be Rp2,726,785.76 million with the value of Rp278 to PT Modern Internasional Tbk’s equity. But, in case the company will not survive or have to liquidate its assets, the value of firm will be Rp572,691.88 million with the stock price of Rp36, which below the current stock price at Rp50. <br /> <br />