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Thursday, February 09, 2017       09:48 WIB
PremierInsight: MPMX is trying to optimize MPM Rent by carefully allocate its capex at c.Rp400bn

MPMX: We visited PT Mitra Pinasthika Mustika (MPMX IJ; Rp870; Hold) yesterday and gain some insights for 2017:

  • MPMX will finalize its divestment in MPM Finance to help easing its balance sheet (better gearing ratio), while still enjoying 40% shares in associate to tap into MPM Finance’s profitability. The Company believes that JACCS, its current Japanese strategic partner, have the expertise in bringing low cost of fund to MPM Finance and eventually promoting a high margin business. No disclosure made for its transaction value yet.
  • MPMX is trying to optimize MPM Rent by carefully allocate its capex at c.Rp400bn to maintain its fleets at 14,000. In addition, under MPM Rent, the Company is planning to venture to logistic business in the future.
  • MPMX is trying to bring better profitability in MPM Auto (4W business) by shifting its salary expense from fixed salary to sales-performance base system. Thus, it will encourage higher sales and better overall margin. However, there is no plan yet from the Company in bringing other brands, other than Nissan.
  • MPMX targets FY17 bottom line growth at +20%, driven by top line growth at +10% and margin expansion. The Company will continue its cost-efficiency strategy started in late 2016 that have proven to be successful in lowering operational costs across its business units.
 

 

Sumber : IPS RESEARCH


 





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