Saratoga Remains Robust by Booking Stellar Performance in 2020
Jakarta, March 9, 2021 – PT Saratoga Investama Sedaya Tbk. (ticker code: SRTG) posted a solid performance in 2020. The company’s net profit increased by 20 percent to IDR 8.82 trillion. This was supported by an increase in the value of the investment portfolio, evidenced from the net asset value of Saratoga surging 39 percent to IDR 31.70 trillion at the end of 2020.
Saratoga President Director Michael Soeryadjaya remarked that the solid performance of Saratoga’s investee companies during the 2020 pandemic was the key to the company’s achievement. This was reflected in the increase in the value of Saratoga’s investments in a number of portfolio companies as well as consistent dividend payments.
“We are grateful that amid a difficult situation due to the COVID-19 pandemic, Saratoga has succeeded in sustaining its growth momentum and achieved a robust performance. As an investment company with long-standing experience in Indonesia, Saratoga prioritizes prudence by managing all risks involved and consistently implementing a diversification strategy. This approach has kept us strong amid uncertainty and allowed us to be responsive in addressing all the dynamic changes,” Michael said in Jakarta, Tuesday (9/3).
Throughout 2020, Saratoga directed its focus in developing corporate strategies to maintain operational resilience during the pandemic, both for the parent company and its investee companies. By the end of 2020, this target of operational resilience has proved to be achievable.
In 2020, Saratoga’s investment value in PT Merdeka Copper Gold Tbk. (ticker code: MDKA) rose 120 percent to IDR 10.18 trillion and the investment value in PT Tower Bersama Infrastructure Tbk. (ticker code: TBIG) increased by 56 percent to IDR 12.64 trillion. Saratoga also managed to book a total dividend income of IDR 750 billion in 2020, which was mainly contributed by PT Adaro Energy Tbk. (ticker code: ADRO) at IDR 215 billion, PT Tower Bersama Infrastruktur Tbk. (ticker code: TBIG) at IDR 214 billion, PT Mitra Pinasthika Mustika Tbk. (ticker code: MPMX) at IDR 210 billion and PT Provident Agro Tbk. (ticker code: PALM) at IDR 105 billion.
Michael added that Saratoga will continue to seek new investment opportunities and support the government’s efforts to accelerate economic recovery from the impact of COVID-19 pandemic. “We hope that the current vaccination program can swiftly break the COVID-19 chain of transmission and put this pandemic to a stop. Saratoga will continue to actively implement its strategy to ensure that the growth of the company will be even more optimal after the pandemic ends,” he added.
Saratoga Investment Director Devin Wirawan explained that a number of Saratoga’s investee companies found their business growth momentum during the pandemic. He described that MDKA’s performance continued to strengthen thanks to the steep increase in gold and copper price in 2020. Amid economic uncertainty due to the COVID-19 pandemic, gold is a “safe haven” commodity which will remain as the most sought-after investment
instrument in the world. This opportunity will further strengthen MDKA’s fundamentals going forward.
Devin continued, society’s increasingly rapid adoption of the online digital ecosystems has provided greater opportunities for PT Tower Bersama Infrastruktur Tbk. as a provider of telecommunication infrastructure services. Meanwhile, in the consumer sector, PT Deltomed, which produces herbal medicines, has succeeded in optimizing the strong public demand for health products during this pandemic. PT Famon Awal Bros Sedaya, our hospital group, also continued to support the government’s efforts in controlling the pandemic by providing special rooms for COVID-19 patients as well as rapid test drive-thru services.
“As an active investment company, Saratoga continues to assist investee companies to grow and optimize every available opportunity. In a situation that remains highly dynamic and challenging, Saratoga’s cost ratio to net asset value, which is still low at around 1 percent, will help the company’s performance to remain solid,” Devin said.
Investee Companies’ Performance
PT Adaro Energy Tbk. ADRO coal production reached 54.53 million tons and coal sales volume reached 54.14 million tons in 2020. Adaro is seeing some signs of rebalancing in the coal market thanks to the discipline with supplies. The company remains optimistic about the industry’s long-term fundamentals. In facing short-term challenges, the company is focusing on preserving cash, strengthening its capital structure and financial position, staying on the existing path, continuing to execute strategies to ensure business sustainability, as well as making contributions to national development.
PT Merdeka Copper Gold Tbk. Increase in gold and copper commodity prices during 2020 has provided a momentum to strengthen the company’s business fundamentals. In 2021, MDKA targets a total gold production of 100,000 – 120,000 tons and copper of 14,000 – 17,000 tons and remains focused on developing the Tujuh Bukit Copper project, which experienced positive progress in 2020. In addition, MDKA has also signed a memorandum of understanding (MOU) with Eternal Tsingshan Group Limited (Tsingshan) to develop a copper ore processing project at the Wetar mine. This partnership is expected to commence commercial production within two years and become a long-term multi-commodity asset for MDKA.
PT Mitra Pinasthika Mustika Tbk. Even though the automotive industry was exposed to pressure due to the pandemic, MPMX has already been able to achieve positive profits in the first nine months of 2020 considering the improvement in motorcycle sales in the last few months. In 2021, MPMX is projecting revenue growth of up to 15%.
PT Tower Bersama Infrastructure Tbk. recorded strong growth compared to 2019. The business was able to withstand the pressure of the COVID-19 pandemic due to long-term rental contracts that span an average of 10 years with telecommunication operators. TBIG also obtained a number of new contracts during 2020 and has exceeded its 2020 target by adding 3,319 new leases during the first nine months of 2020. Going forward, TBIG is projected to experience rapid growth from digital technology that drives the transformation of industry and society.
PT Famon Awal Bros Sedaya, has strengthened its quality by providing hospital services that prioritize center of excellence, equipment upgrades, and technological advancements that were fully supported by Saratoga both in terms of operations and business expansion. In 2020,
FABS was successful in securing additional loans to support its business expansion plans which includes the inauguration of four new hospitals in 2021. The launch of the new hospitals demonstrates FABS’s commitment in developing a better healthcare system in Indonesia.
In April 2020, the change of the hospital name from Awal Bros to Primaya Hospital further underlined the commitment of Awal Bros Hospital Group in providing better service quality to all elements of society across Indonesia. Primaya Hospital represents a transformation and a new image for Awal Bros Hospital as a private hospital with international Joint Commission International (JCI) accreditation in Indonesia that provides international-standard health services.
Primaya Hospital also remained committed in its support to the government in dealing with the COVID-19 pandemic by providing special rooms for COVID-19 patients and providing rapid test drive-thru services.
PT Deltomed Laboratories, one of the biggest players in the herbal remedies industry, has succeeded in boosting Antangin’s sales in 2020. This increase in sales was driven by society’s rising health awareness and supported by the company’s strong operations and distribution.
To meet the needs of the public in improving their immune system, Deltomed Laboratories introduced its latest herbal medicine, Imugard, which contains extracts of Phyllanthus urinaria, Moringa leaves, and turmeric. This product is efficacious in maintaining immune system and has received license to circulate from the Indonesian Food and Drug Authority (BPOM).