Malindo

CASE: MALINDO

PT Malindo Feedmill Tbk, is a company that established in 1997, run in animal feeds and breeds commercial day-old chicks business. It has been affected by the avian influenza epidemic in 2005-2007. After the epidemic, this business is back and arises. It also supported by the increasing level consumption of affordable protein. Malindo Feedmill producing and selling animal feeds (broiler), commercial race, and also day old chick (DOC).

Along January - September 2011, MAIN business performs is positive, although not significantly above 50%. Net income increase for 35.73% to Rp. 152.17 billion from the same period for Rp. 112.11 billion. This profit is earned from the increasing of revenue for 35%, for Rp. 1.96 trillion from Rp. 1.45 trillion and gross profit for Rp. 329.70 billion, increase 29%. Nevertheless, the expenses also increase 28% for Rp 109.52 billion from Rp. 85.27 billion. Not just the revenue that increasing, but also the net income margin is increase for 0.81%

In comparison, another animal feeds company has higher revenue than Malindo, but lower in net income margin.

The revenue from quarter III/2011, animal feeds sales contribute for 66% or Rp 1.28 trillion. DOC sales for 18%, broiler for 11%, and the rest are another sector.

Based on the analysis of Divisi Valuasi Saham and Indexing PT Pemeringkat Efek Indonesia, chicken consumption will increase and will be the factor of the increasing animal feeds industry including MAIN. Based on Pefindo estimation, MAIN revenue will come to Rp 2.52 trillion until the end of year or rise for 23.7%.

Pefindo see that history performance of MAIN is good, especially in profit margin and production efficiency, plus availability of production capacity and increasing of gross domestic product. Malindo also increasing its capacity production by operating new factory in Cikande, West Java, for 450.000 per year. With this, total capacity production is 900.000 metric per year.

The challenge for Malindo...