Articles

Valuation and Financial Performance Analysis of Pt. Indika Energy

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According to a coal market update study by the International Energy Agency, coal prices have been highly volatile during the previous five years, significantly influencing Indonesian coal companies’ operations and substantially impacting income and stock values. Furthermore, the increased global attention to addressing climate change is anticipated to lead to stricter enforcement of carbon emissions laws by 2030. PT. Indika Energy is an energy company that highly relies on coal prices, accounting for 75% to 88% of its revenue. Indika has stated four strategies, two of which are Efficiency and Synergy Optimization, and Prudent management. However, the result of profitability performance is not aligned with the company strategy. This research proposes to evaluate the comprehensive financial performance, assess the intrinsic value using the DCF-FCFF approach, and estimate PT’s price-to-earnings (P/E) ratio and Market to Book (M/B) ratio. Indika Energy. This study uses several ratios, including liquidity, profitability, activity, and leverage ratio. The study revealed that the company demonstrates the worst liquidity performance and is the least profitable among its peers. However, the company has managed to maintain the most significant leverage ratio. According to the DCF valuation, the company appears to be undervalued, with an intrinsic value of IDR 3,247, while the market value is IDR 1,540. The company is also undervalued based on its relative valuation metrics. It has a price-to-earnings ratio (PER) of 1.06 and a price-to-book value (PBV) of 0.45, compared to the industry average PER of 5.15 and PBV of 5.27. Hence, the company should minimize its reliance on subcontractors by optimizing its cost structure.

Proposed Knowledge Management Design to Improve Business Processes at O Mart Retail Company

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Retail trade plays an important role both in a global context and in Indonesia itself because it drives economic growth, creates jobs and shapes consumer behavior. Understanding the importance of industry growth, dynamics of competition and knowledge management are essential for optimizing business performance and achieving sustainable success. Minimarket O Mart is one of the small retail in the form of minimarkets in Indonesia, minimarket O Mart has problems in its business, namely inefficient business because O Mart is still in its standard operating procedures, because there is still no good SOP documentation, besides that the knowledge sharing activities within the company is also limited to chatting and has not been carried out formally within the company. The aims of this study are to propose a knowledge management system that can improve business processes at O Mart and to develop an implementation plan for the suggested knowledge management system, outlining the steps and strategies required for its successful integration at O Mart. Theories that support this research are the Definition of Knowledge, Fishbone Analysis, Knowledge Management Framework, People-Process-Technology Framework, SECI Model, KM Roadmap, and Implementation Plan. The research methodology is based on a qualitative research design involving data collection through interviews with employees from various departments of O Mart Retail Company. This research uses a knowledge management framework (People, Process, Technology) and the SECI model which will then produce a Knowledge Management Roadmap and also a Knowledge management implementation plan which is expected to overcome the problem of inefficient business processes at O Mart minimarkets.

Stock Valuation and Business Performances of Indonesia Health Care Provider Company after Post Covid 19 Pandemics (Case Study of PT. Medikaloka Hermina, Tbk.)

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The Covid-19 pandemic caused a contraction in the Indonesian economy, as evidenced by the large number of layoffs, and several companies had to declare bankruptcy, but this did not occur for companies engaged in health services, including hospitals. The large number of Indonesians infected with the Covid-19 virus caused hospitals to experience an increase in inpatient admissions, which accelerated the hospitals’ financial performance in a very short period of time. PT Mediloka Hermina, Tbk (HEAL) is a private hospital with the greatest number of branches in Indonesia, all of which are impacted by the Covid-19 pandemic. This is also a positive sentiment among stock investors, as they perceive the health industry sector to have very promising future prospects. Several listed hospital company on the IDX have seen their share prices increase significantly over the past year, including PT. Mediloka Hermina, Tbk, whose share price increased by 197 percent between 23 March 2020 and 23 March 2021. This made the author curious about PT Mediloka Hermina, Tbk’s stock valuation and whether its shares are classified as overvalued or undervalued. This study utilizes secondary data obtained from the annual report of PT. Mediloka Hermina, Tbk as well as idx.co.id and stockbit.com, among others. The data was processed with the absolute valuation method (Discounted Cash Flow) and the relative valuation method (Relative Value) in mind (EV EBITDA and Price Earnings to Ratio). Using the Discounted Cash Flow model, the company’s intrinsic value is IDR 452.80 per share. It has a safety margin of -135 percent relative to the per-share market price of IDR 1,065 as of 31 December 2021. The intrinsic value per share is 688 IDR based on the relative price-to-earnings ratio and relative valuation EV EBITDA of 7.21. Following the evaluation procedure. The author may determine the relationship between HEAL’s fundamental company and its stock price growth.