Articles

An Evaluation and Proposed Strategies for PT XYZ Tbk’s Green Bond

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Environmentally friendly projects could be funded by green bond. The most recent company that issued green bond is PT XYZ Tbk. The company has 112.2 MW gap to their hydro power plant capacity target. Moreover, the green bonds issued has higher coupon than other green bonds in Indonesia. This research aims to find the issue’s cause, the effect of green bonds issuance on company valuation, and recommendations for next green bonds issuance. Compared with benchmarks in Indonesia and some issuers abroad, PT XYZ Tbk’s has no Environmental, Social, and Governance (ESG) rating and the green bond has lower credit rating than other issuers. The value of PT XYZ Tbk increases by 2.35% after issuing green bond, calculated using Discounted Cash Flow valuation technique. For successful future green bond issuance, PT XYZ should increase its credit rating, mitigate risk related to hydro power plant condition, and get ESG rating.

Financial Performance and Valuation Assessment of PT Gudang Garam Tbk in Comparison to PT. Hm Sampoerna and PT. Wismilak Inti Makmur

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The Tobacco Products Industry (IHT) remains the primary sector as one of the largest contributors to the national economy through excise. The tobacco or cigarette processing industry amounted to IDR 21.96 trillion in the first quarter of 2022. This value grew 0.98% compared to the same period the previous year (year on year/yoy) of IDR 21.75 trillion. This final task will aim to assess the performance finance PT. Gudang Garam Tbk for the last five years has provided recommendations to PT. Gudang Garam tbk in increasing company profits and sales. Ultimately to achieve management goals and provide optimal returns to investors. Financial ratio analysis carried out in this project includes profitability ratios, liquidity ratios, solvency ratios, market ratio, activity ratio, and intrinsic value of GGRM companies using the free cash flow to the firm (FCFF) method. The study results show that GGRM has good performance and the valuation results using the FCC method show that the intrinsic value of the shares is IDR 112,775, while the stock market price is IDR 17,100 (As of January 16, 2023), so the value of the shares is stated to be undervalued.