ASSESSMENT & ANALYSIS OF PULP & PAPER INDUSTRY: CASE STUDY OF PT. TJIWI KIMIA TBK.
In the beginning 2010, paper industry have change in its market segment, whilst demand for printing, writing paper and newsprint is decreasing globally, the internet and e-commerce business model has driven the rapid expansion of the express delivery business. The demand for packaging paper is ex...
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| Format: | Theses |
| Language: | Indonesia |
| Subjects: | |
| Online Access: | https://digilib.itb.ac.id/gdl/view/54750 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | In the beginning 2010, paper industry have change in its market segment, whilst demand for printing,
writing paper and newsprint is decreasing globally, the internet and e-commerce business model has
driven the rapid expansion of the express delivery business. The demand for packaging paper is
expected to increase steadily. Indonesia is one of Pulp & Paper producer in the world and have
continuously exporting the finished paper product and pulp.
In the early stage pandemic Covid-19 condition (March 2020) the Tjiwi Kimia shares value is drop until
maximum bottom level -66.87% from its previous highest price at January 2020 In contrast, TKIM
financial performances are good, shown by EPS growth Quarter (YoY) Q1 2020 is increase 225,97%,
Total assets growth on Q1 (YoY) is increase 0,71%, net income also increasing from 47,9 Million USD
to 156,23 Million USD.
This study is to conduct analysis of financial & business performance of Tjiwi Kimia through timeseries,
cross-sectional financial ratio analysis and DuPont analysis. Moreover, how the company
business performance evaluation using internal and external analysis. This study also conduct valuation
analysis of company stock based on investor point of view using relative valuation and absolute
valuation through discounted cash flow and Free cash flow to the firm methods.
The result of analysis concludes that Tjiwi Kimia has a good result of financial performance in term of
liquidity, profitability, activity, leverage and market ratio. And shown by 5-years CAGR EPS is 67.9%.
and for stock valuation analysis result, we found Tjiwi Kima stock is undervalue. Author set target price
at Rp 12,600.00. Hence, author recommendation for TKIM is BUY – with 21% MOS (Margin Of
Safety) of upside potential from its current price of Rp 10,425.00 (31 March 2021). |
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