Lledo to President Director from CFO previously, and the appointments of Mr. Kailas Nath Raina and Dr. Andry as CFO and COO respectively.
F. Lledo to President Director from CFO previously, and the appointments of Mr. Kailas Nath Raina and Dr. Andry as CFO and COO respectively.
Key Management Team
Name
Current appointment
Experiences - Appointed as President Director since 2014
- Served as Accounting & Finance Director in Siloam International Hospital (2010 - 2013) - Has over 11 years of experience as finance executive and 26 years of experience in commerce and industry management - Served as President Director at PT Mitra Kreasidharma and PT Inti Everspring
Romeo Fernandez Lledo
President Director
Indonesia (2008 - 2010) - Served as President Commissioner of PT Indonox Mitra Pratama and PT Unggul Indah Cahaya Tbk (2008 - 2010)
- Acquired the title of Certificate Public Accountant (CPA) in the Philippines (1977) - Obtained certification from the Strategic Business Economics Program for Senior
Executives (SBEP) of the Center for Research amd Communication, Philippines (1991) - Obtained certification from Management Development Program (MDP) of the Asian Institute of Management, Philippines (1986)
- Appointed as Director since 2014 - Senior Vice President in Citibank Indonesia (2010 - 2013) as Cards and Investment
Kailas Nath Raina
Chief Financial Officer - Director
Operations Head - Vice President in Citigroup Philippines (2007 - 2010) as Head of Credit Operations and Transaction Services
Dr. dr. Andry, M.M., M.H.
Chief Enterprises and
- Appointed as Director since 2014
Kes.
Operational Officer - Director
- Chief Executive Officer of Siloam Hospital Lippo Village - Appointed as Director since 2007 - Chief Executive Office of Siloam Karawaci Hospital (2001 - 2007)
Dr. Grace Frelita Indradjaja,
- Has dedicated over 25 years to the healthcare services development in Indonesia MM
Group Global Quality
Development Director
- Introduced JCI accreditation to Indonesia (2007) - Earned Masters of Management from the University Indonusa Esa Unggul, Jakarta (1997) - Earned a Bachelor of Medicine from Atma Jaya Catholic University, Jakarta (1982)
- Appointed as Director since 2011 - Has more than 25 years of experience in the healthcare industry, with Indonesian
Army (TNI-AD) and International SOS
Dr. Anang Prayudi
Director of Strategy and
- Served as Medical Director at International SOS (1998 - 2011)
Development
- Obtained a Master of Occupational Medicine of the University of Indonesia, Jakarta (2006) - Graduated from Department of General Medicine in University of Brawijaya, Malang (1989)
- Appointed as Director since 2011 - Currently serves as President of Mochtar Riady Institute for Nanotechnology and President of University of Pelita Harapan (since 2011)
- Currently holds Professor & Head of General Surgery Unit III (General Surgery & Prof George Mathew
Director
Surgery Oesophago Gastro duodenal) at Christian Medical College, India (since 1997) - Earned Doctor of Medicine (Surgery) from University of Adelaide, Australia (1997)
- Obtained Master of Surgery from Christian Medical College Vellore, India (1984) - Earned Medical School (MBSS) degree from Christian Medical College Vellore, India
Source: Company
Page 52
Siloam International Hospitals
Segmental Breakdown
FY Dec 2011A 2012A 2013A
2014F 2015F 2016F
Revenues (Rp bn)
IP-Medical services
1,124 1,492 2,000 IP-Medical supplies
767 1,018 1,364 OP-Medical services
813 1,079 1,446 OP-Medical supplies
Gross profit (Rp bn)
304 403 540 IP-Medical supplies
IP-Medical services
207 275 368 OP-Medical services
296 393 526 OP-Medical supplies
Gross profit Margins (%)
27.0 27.0 27.0 IP-Medical supplies
IP-Medical services
27.0 27.0 27.0 OP-Medical services
36.4 36.4 36.4 OP-Medical supplies
27.6 27.6 27.6 Source: Company, DBS Vickers
Page 53
Siloam International Hospitals
Income Statement (Rp bn) Margins Trend
FY Dec
2011A
2012A 2013A
Cost of Goods Sold 4.5% (926) (1,343) (1,845) (2,377) (3,155) (4,227)
Gross Profit
Other Opng (Exp)/Inc 3.0% (245) (368) (583) (751) (993) (1,321)
Operating Profit
Other Non Opg (Exp)/Inc
Associates & JV Inc 2016F 0 0 0 0 0 0
2012A
2013A 2014F 2015F
Operating Margin % Net Income Margin %
Net Interest (Exp)/Inc
Exceptional Gain/(Loss)
Pre-tax Profit
Minority Interest
Preference Dividend
Net Profit
Net Profit before Except.
Revenue Gth (%)
EBITDA Gth (%)
Opg Profit Gth (%)
Net Profit Gth (%)
Margins & Ratio
Gross Margins (%)
Opg Profit Margin (%)
Net Profit Margin (%)
Div Payout Ratio (%)
Net Interest Cover (x)
Source: Company, DBS Vickers
Page 54
Siloam International Hospitals
Balance Sheet (Rp bn) Asset Breakdown (2014) FY Dec
Net Fixed Debtors -
Assets -
Net Fixed Assets
Invts in Associates & JVs
Other LT Assets
Assocs'/JVs -
23 0.0% Inventory 44
Cash & ST Invts
Debtors 124 Bank, Cash 187 271 300 399 534
and Liquid
Other Current Assets Assets - 43 26 26 32 38 46
Total Assets
ST Debt
Other Current Liab
LT Debt
Other LT Liabilities
Shareholder’s Equity
Minority Interests (4)
Total Cap. & Liab. 1,112
Non-Cash Wkg. Capital 17 36 113
Net Cash/(Debt) 68 98 456
Debtors Turn (avg days)
Creditors Turn (avg days)
Inventory Turn (avg days)
Asset Turnover (x)
Current Ratio (x)
Quick Ratio (x)
Net Debt/Equity (X)
Net Debt/Equity ex MI (X)
Capex to Debt (%)
Z-Score (X)
Source: Company, DBS Vickers
Page 55
Siloam International Hospitals
Cash Flow Statement (Rp bn) Capital Expenditure
Pre-Tax Profit
Dep. & Amort.
Tax Paid
Assoc. & JV Inc/(loss)
Chg in Wkg.Cap.
Other Operating CF 0 (1) 0 (1) (1) (1)
2012A 2013A 2014F 2015F 2016F
Net Operating CF
Capital Expenditure (-)
Capital Exp.(net)
Other Invts.(net)
Invts in Assoc. & JV
Div from Assoc & JV
Other Investing CF
Net Investing CF
Div Paid
Chg in Gross Debt
Capital Issues
Other Financing CF
Net Financing CF
Currency Adjustments
Chg in Cash
Opg CFPS (Rp)
Free CFPS (Rp)
Source: Company, DBS Vickers
Page 56
Indonesia Healthcare Sector
Tempo Scan Pacific
Bloomberg: TSPC IJ | Reuters: TSPC.JK
Refer to important disclosures at the end of this report
NOT RATED Rp2,960 JCI : 4,842.13 Price Target : Not Rated
Sticking to the core
Potential Catalyst: Potential expansion into other business segments
Remains a domestic play
Analyst
Decent overall margins
Edward Tanuwijaya +6221 3003 4932 [email protected]
Rising labour cost may hurt EBIT margins
Modest growth with reasonable valuations
Still a domestic play. Tempo Scan Pacific (TSPC)’s
Price Relative
domestic revenue grew at 13% CAGR since 2008,
Rp
Relative Index
and contributed 95% to total revenue in FY13 ,
despite strong growth in international revenue in the
past two years (28% CAGR).
Decent margins for each business segment. In
70 FY13, TSPC’s GP margin was 39.7% (the highest level
864.0 Jun-10 Jun-11
Jun-14 50 since 2008) despite pressure on COGS, implying TSPC’s
Jun-12
Jun-13
ability to pass on cost increases to their customers. GP margins for Pharmaceuticals & Consumer health
Tempo Scan Pacific (LHS)
Relative JCI INDEX (RHS)
Forecasts and Valuation
products and Consumer products & Cosmetics have risen steadily to 65% and 61%, respectively. Although
lower, distribution segment’s (wide network covering
Turnover
185 locations in Indonesia with 67 branches and 118
EBITDA
Pre-tax Profit
sales points) margins are more stable than the other
Net Profit
two divisions .
Net Pft (Pre Ex.)
EPS (Rp)
Higher salary & wages can surpress EBIT
EPS Pre Ex. (Rp)
EPS Gth (%)
36 16 11 1 margins. “Salary, wages and employee benefits”
EPS Gth Pre Ex (%)
36 16 11 1 (representing 29% of total SG&A) went up higher
Diluted EPS (Rp)
than expected (+18% y-o-y) in FY13. Labour strikes
Net DPS (Rp)
BV Per Share (Rp)
(like in 2012) has also historically disrupted operations
PE (X)
at its manufacturing facilities.
PE Pre Ex. (X)
P/Cash Flow (X)
Modest growth at reasonable valuations.
TSPC
EV/EBITDA (X)
Net Div Yield (%)
2.2 1.6 2.6 2.5 expects revenue to grow around 12% this year, while
P/Book Value (X)
gross and net profit margins remain stable. TSPC
Net Debt/Equity (X)
CASH CASH CASH CASH
currently trades at 15.7x FY15F PE based on
ROAE (%)
consensus earnings (3 analysts), cheaper than peers’
Other Broker Recs:
average of 22x.
ICB Industry : Health Care
At A Glance
4,500 Principal Business: TSPC manufactures and distributes
ICB Sector: Pharmaceuticals & Biotechnology
Issued Capital (m shrs)
pharmaceutical, healthcare and cosmetic products
Mkt. Cap (Rpbn/US$m)
Major Shareholders
Source of all data: Company, DBS Vickers, Bloomberg Finance L.P Bogamulia Nagadi (%)
Free Float (%)
Avg. Daily Vol.(‘000)
Page 57
www.dbsvickers.com
ed: JS / sa: MA
Tempo Scan Pacific
Driven by domestic demand