Articles

Comparative Analysis of Pra-Post Merger and Acquisition Financial Performance Reviewed From EVA, MVA and Financial Ratio Methods (Empirical Study of Non-Financial Sector Companies Listed on the IDX for the Period 2015-2020)

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This study aims to compare the pre-post M&A financial performance of non-financial companies listed on the Indonesia Stock Exchange (IDX) in the 2-year period before mergers and acquisitions (M&A), in the year of M&A, and 2 years after M&A. Performance was measured using Economic Value Added (EVA), Market Value Added (MVA), and financial ratios. The research sample consisted of 22 companies selected by purposive sampling, and secondary data were analyzed from financial statements. Partial analysis was conducted with the Wilcoxon Sign Test because the data was not normally distributed, while simultaneous analysis used the MANOVA test with the STATA version 17 application. The results of simultaneous testing showed no significant difference in financial performance between before and after M&A. However, partial test results found significant differences in MVA variables in the period 2 years before, 1 and 2 years after M&A, as well as in the year of M&A. In addition, the ROA variable also shows significant differences in the 2-year period before, 1 and 2 years after M&A. However, the effect of M&A on MVA and ROA variables tends to be negative.

Sharia External Financing Alternatives for Business Expansion Study Case: PT. XYZ

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This study investigates sharia compliance external sources of financing for SME’s business expansion. The object of this study is PT. XYZ that operates in the security service business entity of outsourcing industry. In the last five years until 2022 XYZ has declined in number of clients growth. Fortunately, in 2023 XYZ received an offer to supply 500 security personnel that will increase its sales growth to 134%. This growth is a lot higher than the internal and sustainable growth rate of the company, and hence it needs external financing of IDR 5.2 Billion to support the business expansion. The data collected in this research is through primary and secondary data from a semi-structured interview, five years of financial reports and desk research method.

This study examines three alternatives of external Sharia financing namely Islamic Bank financing, Sukuk Issuance and Stock Issuance. XYZ needs to choose one alternative that makes the financial performance of the company healthy and also provides the most worthy risk-return to the equity holders. According to the financial ratios, DCF company valuation and risk-return analysis, this study finds that Sukuk is the best alternative external source of financing for XYZ because it makes the financial performance of the company healthy and also provides a desirable returns for the shareholders with lower risks. XYZ and others SMEs could use this alternative source of external financing to support business expansion. Sukuk can be issued through a funding campaign within a specified period in an authorized and credible Islamic Securities Crowdfunding (I-SCF) platforms.

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.

Financial Performance Analysis and Stock Valuation of Coal Mining Company during Covid19 Pandemic (Case Study: Adaro Energy Indonesia)

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Coal is one of the commodity that is mined and consumed a lot in Indonesia and also the world. The thermal coal is needed for the electricity meanwhile metallurgical coal is needed in the steel making industry. Towards mid-2021, the coal price has escalated to all time high. It affects stock price performance of several coal mining companies in Indonesia. From having a bad downturn in 2020 due to Covid-19 and less energy demand, coal starts to gain more demand in 2021 in line with more industrial activities and economy recovery. In Indonesia, one of the coal mining company with one of the largest reserve and largest market capitalization is Adaro Energy.
The purpose of this research is to analyse the intrinsic value of Adaro Energy to help investors gain insight especially after the world economy is recovering after two years in the pandemic crisis. The financial performance of Adaro Indonesia will be projected for the upcoming five years. From the calculation using Discounted Cash Flow, it is found that the intrinsic value is IDR3, 263.56. Considering the market value of Adaro in the closing date of 2021 is IDR2, 250, thus the expected rates of return is 45% or IDR1, 014. Form the calculation using Dividend Discounted Model, the intrinsic value is IDR3, 494.05 (55, 3% return); using PBV, the intrinsic value is IDR3, 513 (56% return); using EV/EBITDA, the intrinsic value is IDR2, 605 (16% return).