JAKARTA (TheInsiderStories) – Consumer goods company, PT Unilever Indonesia Tbk (IDX: UNVR) do a stock split to make stock more affordable for retail investors, wrote the company on Saturday (09/28). However, the manufacture not yet mentioned the stock split ratio.
On Friday, Unilever’ shares was traded at Rp47,000 a unit. To date, total number of the company shares reached 7.63 billion units. Of the total numbers, 84.99 percent or 6,48 billion shares are owned by Unilever Indonesia Holding B.V and the remaining 15.01 percent or 1,14 billion hold by public.
The company, led by Hermant Bakhsi, has a capitalization value of Rp356.61 trillion (US$25.59 billion), the largest after other public listed firms PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI) and PT Telekomunikasi Indonesia Tbk (IDX: TLKM). In the second quarter of 2019, the value of Unilever‘ assets is currently recorded at Rp21.87 trillion.
In addition, the unit of British-Dutch Unilever Plc’ also aimed to replace one of its director Amparo Cheung Aswin, who resigned from the company recently. All these planned will be discussed at the shareholders meeting, said the company.
The management will propose Rizki Raksanugraha as the new director to replace Aswin. He was previously worked at PT Danone Indonesia as a director of operations. Raksanugraha has more than 27 years experience in the supply chain field, both in Indonesia and other countries such as Thailand, several countries in the Middle East, Europe, also China.
Bahana Sekuritas assessed that consumer sector is the only sector that still contributes positively to Indonesia’ economic growth amid the weak export and investment performance due to the trade war and other global sentiments. Besides, the government efforts to maintain the purchasing power of the lower middle class through various subsidy programs.
Seeing this, the local securities house’ analyst Giovanni Dustin rated, that these sector is still quite promising for the long term, although for the short to medium term there will still be challenges. He adds, in the short term the challenge to the consumer sector will mainly stem from the risk of weak absorption for full time labor and competition that will still be fierce for the product categories that are growing quite rapidly.
In order to maintain positive performance, the company is expected to innovate products or to adjusting the size or volume of certain goods. By looking at the current economic conditions and going forward, Bahana gave a recommendation to buy Unilever‘ shares with a target price of Rp 52,200 a share because it has more diverse products ranging from the upper to lower segments of society.
Therefore, the company coded for UNVR shares in the past five years has been able to record positive performance with a stable margin of around 23 percent annually. UNVR is also one company that is quite disciplined in maintaining its financial health.
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