GGRP: Steel Domestic Demand Remains High
GGRP: Steel Domestic Demand Remains High. Gunung Raja Paksi Tbk (GGRP) officially became a public company, Thursday (19/9) then. GGRP aims at net profit of 2020 can reach USD 38.5 Million. This figure rises 48% YoY from this year’s profit target which is set at USD 26 Million. President Director of GGRP, Alouisius Maseimilian dare to set the target aggressive because of two things, the needs of steel is still growing and the existence of internal efficiency. GGRP predicts the need for steel will increase by 7% – 9% YoY.
Steel Pipe Industry Indonesia’s Ace In Steel Pipes
UNTR: Double Coking Coal Production
Google Cloud in Jakarta
This year, the predict steel needs can reach 16.01 million tonnes or 61 kg per capita, from the needs of 2018 which reaches 15.08 million tonnes or 57 kg per capita. Furthermore, GGRP targets to increase steel sales volume 3.3% to 1.25 million tonnes. With steel price projections of approximately USD 724 per tonne, GGRP targets revenues at 2019 reaching USD 906.64 Million. While at 2020, the target reception could reach USD 950 Million.
Steel Pipe Industry Nation’s Stamp Mark For Steel Pipes
ADHI: Cikunir Toll Road with META
Construction Sector Digital Economy
GGRP note, at 2018, about 95.74%, production was absorb in the domestic market. Moreover, as for 60% sales were made through retail and 40% were sold to the project. GGRP is partnering with state owned enterprises (SOE) such as Pertamina and Perusahaan Listrik Negara (PLN). Around 4.26% of production was export. Its value is about USD 40 Million. GGRP export destination countries include Philippines, Malaysia, Australia and the United States.
Steel Pipe For The Country
FR0078 Selling Action
Cikunir Toll Road Feasibility Studies
Currently, GGRP insists it will remain focus on aiming the domestic market. Because the national steel production capacity is still lacking to meet the needs of steel. Exports are small because of less domestic needs. So we keep the export 5% of the total sales, add Louis. The Ministry of Industry predict the domestic steel production this year reached 17 million tonnes. While national steel needs are estimate to reach 15 million tonnes.
Steel Pipe Industry A Quality Undervalued Stock
Shelf Registration II WOM Finance Tranche II Year 2017
PMI Manufactures Data Press Oil Prices
As well as, GGRP market share in the domestic is also not large. Louis note, of the total demand of 15 million tonnes, the sale of new GGRP was about 1.2 million tonnes. From the domestic production amount of about 7.4 million tonnes, the portion of the new GGRP 16.22%. Target GGRP Forward, follow the capacity of existing machines and look at the market, he said.
Steel Pipe Industry Steel Pipes For The Nation, Cheap and Hot
Waskita Plan Issue Bond worth IDR1Trn
Fiscal Policy Support Rupiah Stabilization
Furthermore, GGRP said the cycle of steel business follows economic growth. With the economic growth that stagnant in the range of 5.1%, steel growth is expect to stabilize by about 7%. Meanwhile, the financial performance of GGRP in 1Q19 then not very good. This steel producer booked a net sales decline of 15.18% YoY to USD 212.13 Million from the previous USD 250.10 Million.
Steel Pipe Industry Beneficiary of key sectors growth
PTBA Expands its Production Volume
Indonesia Industrial Manufacturing Cooperation
Moreover, it also impact the decrease in EBITDA to 161% YoY. EBITDA drop from the previous USD 34.79 Million in March 2018 to USD 13.03 Million. Even so, GGRP dare to set a net profit target of USD 26 Million this year. This is the impact of political campaigns. Last, we are using the budget for the infrastructure, so that the market does wait and see, add him.
