LSIP
Company Profile
- Founded in 1906 as trading and plantation services firm by Harrisons & Crosfield Plc, London based company.
- The world renowned plantation companies with over 100,000 hectares of planted oil palm, rubber, cocoa and tea plantations spread across Indonesia’s four largest islands.
- Current Shareholders: 59.5% owned by PT Salim Ivomas Pratama Tbk (Indo Food Group), and the rest, 40.5% owned by public.
Business Division (Products)
- Oil Palm (CPO): Nucleus oil palm average age is around 11 years old with 35% of planted area are still below 7 years.
- Rubber: Nucleus rubber plantation covered over 17, 600 Hectares which 25% still immature.
- Oil Palm Seeds: Produces on average 20 Million high quality oil palm seeds per annum.
- Cocoa: manages around 2,700 Ha of cocoa planations in East Java, North Sulawesi and North Sumatera.
- Tea: manages tea plantations in West Java
Valuation as of Oct 19, 2011:
- BV = 736
- Price = 2000
- P/B = 3
- P/E = 9
- ROE = 25%.
Its peers:
AALI
- BV = 4748
- Price =19000
- P/B = 4
- P/E = 11
- ROE = 30
SGRO
- BV = 1209
- Price = 2900
- P/B = 2
- P/E = 8
- ROE = 23
BWPT
- BV = 313
- Price = 1110
- P/B = 4
- P/E = 14
- ROE = 24
UNSP
- BV = 632
- Price = 290
- P/B = 0.5
- P/E = 3
- ROE = 9
Positive Performance Driver
- Higher Productivity (Production & Sales Volume)
- Higher Commodity Price: CPO, Rubber, Palm Kernel, Cocoa and Tea.
Future Prospect
- Global demand for CPO which contributed 68% of total revenue in 2010 will remain strong for consumer products and raw material of bio fuel.
- LSIP is the second largest Certifified Sustainable Palm Oil (CSPO) in the country. It will give good corporate image in environmetal awareness era.
- More efficent company due to conducting continuesly Research &Development and modernizing IT system using SAP platform.
- Expanding plantation using plasma plantation scheme in partnership with local smallholders.
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Mamat Rohimat