Susi Effect Boosts Maritime Issuers

Susi Effect Boosts Maritime Issuers

JAKARTA – The government of President Joko Widodo assigns maritime sector as the main development focus during his era. His ambition is to make Indonesia as a global maritime axis.

Not only will it boost Indonesia, this program will also boost the prospect and share prices of maritime and fishery issuers. Since last year until yesterday (1/5), the shares of some issuers in maritime and fishery sector significantly increase.

For example, the share of PT Samudera Indonesia Tbk (SMDR) skyrocketing for 343.75% in the last five months to IDR 14,200 per share. In July 7^th 2014, SMDR’s share price was IDR 3,200 per share.

The other issuer in maritime sector is PT Dharma Samudera Fishing Indonesia Tbk (DSFI) which also benefits the government’s program. In October 27^th 2014, DSFI’s share price was still IDR 50 per share. Two months later, its share price skyrocketed for 298% to IDR 199 per share.

Investa Saran Mandiri Managing Director, Jhon Veter, said maritime issuers’ share price hike occurs due to the new government’s effect intending to boost maritime infrastructure like sea highway. Whereas, he recorded in the last ten years, investors have not worked on this sector. “This situation is only investors’ speculative sentiment while the fundamental still does not see its positive catalyst,” Jhon said yesterday (1/5).

Universal Broker Indonesia Research Head, Satrio Utomo, added even though share price increases, in terms of fundamental, the firm sees no difference. Even, there are some firms working in this sector inflicting loss.

Performance Prospect

One of the examples is PT Central Proteina Prima Tbk (CPRO). The issuer working on shrimp pond still suffers from loss. Referring to financial report in September 2014, CPRO recorded IDR 199.79 billion loss.

However, CPRO shares start to escalate since November 2014 after long sleep from the early year. Until now, CPRO shares have increased 104% to IDR 104 per share from the position on November 20^th 2014 of IDR 50 per share.

Besides Jokowi Effect, Satrio said maritime share hike also comes from Susi Effect. The pointing of Susi Pudjiastuti as Maritime and Fishery (KP) Ministry also affects maritime programs. What Susi has done so far, such as bombing foreign illegal fishing vessels, also ensures investors if this sector can significantly grow.

“Moreover, she comes from fishery business sector. It makes investors really expect in maritime and fishery sector,” added Reza Priyambada, Woori Korindo Securities Research Head.

Seeing that matter, it does not mean maritime issuers’ performances also increase. If we want fundamental of the issuers along 2015 to increase, Jhon and Satrio suggested investors to await between first to second quarter of this year since such periods can see whether the project planned by the government has run well or not and brings good impact or not.

Outside the government’s plan, some issuers in maritime sector in this year keep improving their business for example, PT Sekar Bumi Tbk (SKBM). This shrimp and seafood producer and distributor has created a joint venture by cooperating two Japanese firms namely Seinankaihatsu Company and Nomura Trading. Together with its partner, SKBM runs business in Indonesia.

DSFI also improves its distribution market. The latest news from the firm working on producing and processing seafood especially this fish expands its distribution networks by cooperating with potential market from Japan and Australia. DSFI uses the effort to improve selling volume and technology transfer in fishery product processing sector.

Analysts stated there are some opportunities for issuers to improve their performances. One of the factors is fuel price drop. “Fuel price drop can improve the firm’s performances,” Satrio explained since one of the biggest burdens of share issuers is in fuel.

Maritime sector also sees good prospect. Jhon said maritime transportation has 60% cheaper cost than land transportation. Therefore, people will prefer maritime transportation for commodity delivery. (Kontan)