CORPORATE VALUATION OF INDONESIAN DRONE SERVICE COMPANY: CASE STUDY OF PT MDT
The drone business in Indonesia is rapidly growing due to its vast potential and significant investments in drone technology, which has become essential in agriculture, offshore mining, and aerial photography. The global and Asian drone markets also reflect this growth, projecting a 7.1% CAGR increa...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/84666 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The drone business in Indonesia is rapidly growing due to its vast potential and significant investments in drone technology, which has become essential in agriculture, offshore mining, and aerial photography. The global and Asian drone markets also reflect this growth, projecting a 7.1% CAGR increase driven by industry use and substantial investments. However, valuing drone businesses in Indonesia is challenging due to the focus on intangible assets often overlooked by traditional investment theories and the startup nature of many companies, which prioritize value creation over financial health.
PT MDT, established in 2016, uses Unmanned Aerial Vehicle (UAV) technology for aerial mapping services and partners with industries like agriculture, offshore mining, and aerial photography. They also offer UAV pilot certification programs and sell related products and parts. Despite offering various services and products, PT MDT is experiencing stagnant growth and needs to maximize productivity with its current resources. Management is concerned about valuing potential mergers and faces challenges in maintaining clear financial records and considering industry risks.
The analysis shows that PT MDT's growth is driven by mapping and maintenance services, despite a decline in product sales. While financial health is improving, high production costs and expenses challenge profitability. Positive GPM and OPM indicate potential, but NPM remains negative. Expanding services, boosting efficiency, and leveraging technology and partnerships are recommended. These strategies could enhance sustainable growth and elevate PT MDT's enterprise value, currently estimated at IDR 3.84 billion.
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