JAKARTA (TheInsiderStories) – Publicly listed firm, PT Unilever Indonesia Tbk (IDX: UNVR) will distributing total dividends US$0.03 (Rp430) a share or totaling $234.28 million, said the management on Wednesday (11/27). This dividend will be given to shareholders on Dec 18.
The cum dividends is scheduled on Dec. 2 and the ex dividends will be conducted on Dec. 3 for the regular market and negotiating markets. The company also will conduct cum dividends in the cash market trading on Dec. 4 and ex dividend on Dec. 5.
It said, the dividend came from first half 2019′ net profit worth of Rp3.7 trillion. At the same period, the company’ revenue recorded Rp21.46 trillion, rose 1.29 percent from the previous year worth of Rp21.18 trillion.
In the third quarter (3Q) of 2019, Unilever posted profit Rp5.5 trillion, decreased by 24.4 percent from the same period in 2018 with amount Rp7.28 trillion. The declining was due to a lowering other income, from Rp2.84 trillion in the 3Q of 2018 to only Rp2.16 trillion in 3Q of 2019. While the company’ sales escalated to Rp32.36 trillion from a year ago Rp31.53 trillion.
On Oct. 26, the manufacturer has announced to split its share with a ratio of 1: 5 and will be implemented in early 2020. According to the spokesman, Sancoyo Antarikso, with this new share price, the personal care producer expect could add the share liquidity in the market.
To date, total number of Unilever 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, 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.
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 Rp52,200 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.
To boost the performance of all product lines. Antarikso revealed, since the last year, Unilever has launched four new brands like ice cream product line. He noted, “There is potential for increased growth in the ice cream segment at a price of Rp2,000 – 3,000 a unit,” he said.
To boost the business, the company aimed to spend more but Antarikso rejected to open the exact value.
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