Sunday, July 17, 2011

PT Champion Pacific Indonesia Tbk - Postpone Right Issue

Manufacturers of flexible packaging Champion Pacific Indonesia Tbk PT, discouraged to carry out acts of public offering restricted shares (rights issue) at this year due to time constraints which are now entering the second half.

Previously, the company formerly known as Jaya Tbk PT Kageo Igar admitted reviewing the option rights issue this year to finance the construction of new plant investment is estimated to cost about U.S. $ 30 million.

Finance Director Pacific Champion Berry Karlis said the action was not possible for the company this year because of the long process of preparation of a rights issue.

"It's already July, so it is not possible to conduct a rights issue this year especially it is only one financing option," he said when contacted by Business, last week.

As compensation, he added, the company will use the option of financing from bank loans and internally generated cash to fund investment needs in order to increase the company's production capacity. "We can not tell you how many portions as these are still in the review continues," he explained.

Referring to the company's financial statements as of 31 March 2011, internal cash owned by the company amounted to Rp177, 11 billion, up 85.3% compared to December 31, 2010 amounted to Rp95, 57 billion. While the state ratio of debt to equity (debt to equity ratio / DER) stood at 23.3%, or still in the safe level to seek new loans.

Especially for routine capital expenditures, this year's 79.4% stake of the issuer owned by PT Kingsford Holdings it allocates capital spending around 10 billion-Rp12 billion.

Performance related to the first half of this year, Berry projected the company posted a net profit increase to about 40% or the same as performance in the quarter I/2011.

"Performed quite encouraging as compared to last year. Estimates will be the same as quarter to quarter I/2010 I/2011," he explained.

As of quarter I/2011, the company posted a net profit attributable to owners of the parent entity Rp8, 84 billion, up by 48.2% compared to same period 2010 amounted to Rp 5, 97 billion. Nevertheless, the company reported revenues decreased by 6.9% to Rp121, 43 billion compared with the performance of the same period in 2010 amounting to Rp130, 43 billion.

"Revenue from the first quarter was somewhat impeded or down. The reason is because usually for the first quarter of the factories are still spending old stock," explains Berry.

According to him, these conditions will begin to improve in the second quarter as demand from its customers goods that are currently dominated by the pharmaceutical sector. "Hence, we project to the end of our revenue will grow about 4% -10% as the growth of the pharmaceutical industry. For roughly the same net income," he added.

In addition to the pharmaceutical industry, the company will also enter into the food industry segment that is projected to grow as the increase in national economic growth.

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