DEPOK (eNBe Indonesia) - Humpuss Intermoda Transportasi (HITS), a shipping company controlled by Tommy Soeharto, youngest son of the late president Soeharto, is among the most volatile stocks in the market, whilst with low trading volume.
The stock was Rp330 early last year, rallied to peak at Rp1,175 in April before retreating steadily to Rp340 late last week.
At the last quoted price, HITS had a market capitalization of Rp2.4 trillion, decently valued more than twice its equity (Rp1.1 trillion by Sept 30). It also reflected PE multiple 17 on annualized earnings in the first nine months of 2022.
Looks like that HITS might lead to something bigger going forwards. It has purchased 1.2 billion shares of PT Humpuss Maritim Internasional (HUMI) from its subsidiary PT Humpuss Transportasi Kimia (HTK), for US$77.95 million value, equivalent to Rp1.19 trillion.
HTK has transferred its shares in HUMI to HITS for Rp367.76 billion value on 4 November 2022 and Rp829.76 billion on 9 November 2022. Now HITS controls 89.9% of HUMI shares.
HITS said this transaction aimed to help speeding up the process of transforming HUMI into an energy distribution and infrastructure company as well as a port ecosystem.
That said HUMI studies and examines in depth the opportunities that exist in the maritime field for business growth.
HUMI has a strategy to increase cooperation with a number of well-known companies in the logistics sector such as Mitsui OSK Lines (MOL), Japan, which has partnered with HUMI for more than 30 years.
HITS also plans to launch the IPO for HUMI, targeting to raise funds of around Rp250 billion, used to fund investment, and HITS Group’s capex for this year is set at US$94 million.
HITS said there are so many business opportunities in all ports, so it added a significant number of harbor tug boats and chemical transport ships.
HUMI will focus on strategies to increase assets, revenues, as well as profits, with a business growth target of 20% annually.
HUMI runs various business lines including port services, management and development of human resources (HR), especially crew, LNG transportation, oil and petrochemical transportation to shipping management.
Meanwhile HITS targets revenue growth at 18-20% this year, to adding 11 ships. The global economy is expected to enter into crisis, HITS is optimistic that 2023 utilization will be at 90% because the segment it will focus on is related to energy distribution transportation.
In 2022, HITS spent investment of US$11.32 million, and adding 4 ships. HITS booked revenues of US$112.4 million in first nine months (9M) to September of 2022, surged 132% y/y, and net profit surged 190% y/y to US$11.74 million.
Interesting to see whether the upcoming 2024 elections will change HITS/HUMI’s prospect. The Soehartos are known for their distance with Jokowi regime.
They’re believed rallying behind NasDem’s candidate Anies Baswedan, who might be the main challenger of Ganjar Pranowo (PDIP/Jokowi) in the election.***