There are opportunities in regional markets. Semen Indonesia Tbk (SMGR) will encourage cement trading to regional markets because domestic markets have been experiencing oversupply. The target markets are Sri Lanka and Timor Leste.
Rizkan Chandra, The President Director of SMGR, said that these countries are still well-structured markets and have high cement demand. “These countries don’t have the raw materials so their supplies have to be from Semen Indonesia.” said Rizkan. Cement export to Timor Leste has been done since 2000 and currently, it has reached 180 thousand tons per year. For Sri Lanka, the expansion plan is being explored through its subsidiary, Semen Indonesia International.
Total of the volume for SMGR’s sales reached 13.63 million tons in January to June, 2016. The volume of SMGR export sales decreased by 20.1% to 190 thousand tons. The export of its subsidiary, Thang Long Cement Vietnam, rose by 4.2% to 410 thousand tons. The company is also aiming for cement sales to downstream for precast and ready mix company.
On Monday (1/8), SMGR stock price has strengthened by 6.7% to 10.000 IDR. HSBC Securities recommended buying SMGR with a target of 14.000 IDR. (*)
| Semen Indonesia Tbk Performance | |||
| In trilion rupiah | |||
| Note | H1 2016 | H1 2015 | Changes |
| Income | 12,47 | 12,64 | Down |
| Cost of Revenue | 7,48 | 7,63 | Down |
| Profit | 4,99 | 5,00 | Down |
| Net Profit | 1,96 | 2,19 | Down |
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