SIDO MUNCUL IPO (I)

Appears Sido IPO ProspectsIPO of Medicinal and Pharmaceutical Industries PT Sido Appears ( Sido Appear ) may be interesting to note not only because of its big names , but also because the sector is very interesting that the pharmaceutical sector ( medicine ) herbs , or commonly referred to as herbal medicine . As we know , the pharmaceutical sector is one of the most profitable sectors in Indonesia , and it seems Appears Sido is also one of the best companies in this sector . In the full year 2012 , the company recorded a net profit of Rp388 billion , which reflects the return on assets ( ROA ) 18.0 % . For comparison , during the same period , Kalbe Farma ( KLBF ) which incidentally is the best pharmaceutical companies in the Stock Exchange , also recorded a 18.8 % ROA .Meanwhile, if we look at the historical performance data for the company for at least five years back , so this comes Sido even relatively better than KLBF . Anyway , let's learn more Sido this comes from the beginning .Appears Sido history began in 1940 in Yogyakarta , where a businessman named Mrs. Rahkmat Sulistioningsih pioneering efforts of traditional herbal medicine from his home , assisted by three employees . The effort was successful, and in 1951 stood firm by the name of ' Sido Appears ' which means ' a dream come true ' . The first factory -owned company located in Semarang , with its main products herbal Reject Wind , which later became the company's flagship product until today .

In 1972, the company handed over the reins of leadership to Irwan Hidayat, who is the grandson of Mrs. Rahkmat. Three years later, ie in 1975, officially comes Sido incorporated (into PT). However, further development of the company's relatively slow, in which the expansion is carried out usually just a plant expansion or replacement of existing machines with new, more modern engines. Appears new Sido has factories both in 2000, located in Unggara

Slow development of the company is likely because the company does not require any development . Prior to becoming a multi-billion Dollar company as it is today , Sido Emerging from the beginning has been a profitable company focused on products for mild drugs and eat, shop / nutritious beverages , such as cold medicine , heartburn drug , to energy drinks , which kind of product is consumed by many people continuously ( in contrast to diabetes medications , for example , which of course only be consumed by diabetics ) . Moreover, because the company took the raw material of the types of plants that are easy to obtain from natural archipelago , such as turmeric , ginger , meeting buffoonery , cinnamon , ginger , and pegs the earth ( if you ever stop by the traditional market , you can see for yourself that emang turmeric prices really low ) , then the cost of production is low and consequently the net profit margin to be great .But the cheapness factor in the type of products and raw material prices certainly can not be a guarantee of success of a company . For Sido comes , the key to success to be great company it is today is thanks to two famous brands products , namely Reject Wind Herbs and Herb Kuku Bima . Thanks to two products that, since the first practical Appears Sido is a major competitor of PT Bintang Toedjoe ( a subsidiary of Kalbe Farma / KLBF ) in the pharma industry , aka herbal herbal medicine . If likened to PT Star Toedjoe are Unilever , then Sido is a Group Emerging Wings .But lately as well as expanding the Wings Group launches Sedaap noodles and soy sauce , Sido Appears also began to squirm with developing new products such as drinks Alang Sari , Turmeric Acid , Rice Powder , until Ginger fragrance . And so far these products are also quite successful in the market .Unfortunately, as has been previously thought writer , a good company will not normally Gini models just released by its owner , even though the mechanism through IPO . Because viewed from any side , Sido Appears did not need the help of funding even if they intend to set up a new plant , etc. , because of the position of their cash funds are very abundant . So unless the company can be in - IPO - release it with only a little stock at a premium selling price , then better do not need an IPO at all .And it's true . In its IPO this time , only 10 % of the shares Appears Sido released to the public , and even then 1 % is allocated to employees of the company ( so that actually thrown to public investors only 9 % ) . The price ? Which obviously is not cheap . Appears Sido shares planned to be released at a price of around Rp600 per share , reflecting a market capitalization ( market cap ) Rp 9 trillion . Since the company's post- IPO net capital was approximately Rp2.1 trillion , then that means 4.2 times PBV . Expensive ? In absolute terms , yes , because PBV reasonable for the quality of the company's stock fundamentals such as the Appears Sido is 2 or 3 times ( that comes later entered Sido bluchip group , then just be more expensive than that ) .

But in relative terms , probably not . If we use the current PBV KLBF recorded at 8.1 times the price of 1.280 as a comparison , the IPO price is still fairly reasonable Appears Sido because only half of it . If we talk about long-term prospects also , arguably there is nothing to worry about considering the typical business enterprise that is resistant to economic shocks . You know , if your heart disease and must be treated immediately , then before entering the hospital room you will be blocked by administration officials . But if you have a cold stomach pain , then you can directly to the nearest grocery shop to buy Reject Wind for Rp1 , 500 per sachet its course .However , if the last two or three years of IPO stocks constantly hunted by investors because usually the price immediately soared when listing the prime , then about his condition turned setahunan past , where there are a lot of IPO stocks that not only did not rise at the first day of her listings, but even down . While the ride even it stocks that are fundamentally not clear , and usually end up with insanely decrease , as the case Gading Development ( GAMA ) .Thus, although this comes Sido is undoubtedly a good company and should also be selected for long-term investment , but should we see first , how his movement later in the market ( experience in SMBR and WIIM ya ) . But the author can say is , if it later turns out Sido really comes down after the listing , then the decline would stop at a certain extent , to the next in the long term he will rise again . So you can buy when he went down to the stuck . This never happened in the first ICBP stock had dropped from its IPO price ( 5.350 ) to get stuck in the late 4000 , but now he's already at the level of 10,000 's.Meanwhile, if he even successful ride ? Oh well leave it . Due to the market conditions are still dazed as now , there are many other stocks are more attractive because it is cheaper , both in relative and absolute terms.