PT Karisma Aksara Mediatama Tbk Review
IPO REVIEW
5 July 2018
PT Karisma Aksara Mediatama Tbk
IPO Summary
Schedule (Tentative)
Book Building
Pricing
Effective Letter Obtained
Offering Period
Allotment
Distribution and Refund
Listing
05 - 18 September 2014
Rp 175 - Rp 240
26 September 2014
30 September - 03 October 2014
06 October 2014
07 October 2014
08 October 2014
IPO Structure
PT Karisma Aksara Mediatama Tbk (“Karisma”) is offering 535,821,500 shares or 30% of its paid-in capital in
this IPO. 2% of the offered shares are allocated to Employee Stock Allocation. IPO proceeds (estimated at Rp
93 – 128 billion) will be utilized for subsidiaries investment for their business expansion (63.9%), BNI Bank
loan repayment (21%), working capital (8%) and purchase of supporting equipments (7.1%). The subsidiaries
investment will be used for purchase of new printing equipments, opening new stores and meeting their
working capital needs. The joint lead underwriters are BCA Sekuritas and Kim Eng Securities. The pricing
implied a P/E ratio of 11.2x – 15.3x.
General Company Information
Established in 1995, Karisma, through its wholly owned subsidiaries, has become a fully integrated business
in printing, publishing and retailing education and religious books in Indonesia. The company currently
operates 58 retail branches in almost every province in Indonesia with average store size of 400-500 m2. The
retail stores open seven days a week. The company plans to open another 6 stores this year and another 15
stores next year mainly in eastern part of Indonesia. Karisma has 392 permanent employees as 31 July 2014.
The company, through its subsidiary (PT Binarupa Aksara) publishes mainly books that focus on child
development, self-development and medical. It is one of the biggest publishers of medical books in
Indonesia. Another subsidiary, PT Gospel Karisma Mediatama, concentrates on Christianity books. PT
Binarupa Aksara is also a printer which accepts printing order from other publishers (52%) in addition to
printing its own publication (48%). It currently holds license to publish more than 6,000 titles and has two
printing facilities in Depok and South Tangerang.
The company is also one of the many e-commerce companies in Indonesia. Operating under the website of
www.tokobukukarisma.com , it offers more than 14,000 books titles online as well as office supplies.
Another subsidiary, PT Paperplus Indotama, manufactures and retails office supplies especially from paper &
plastic products (e.g. folder, envelope, printing paper, etc.) under the brand name of Paperplus store.
Financials
Income Figures (Millions)
2010
2011
2012
2013 Mar 2014
99,5
130,0
176,3
203,8
47,7
Revenue
84
66
77
25
72
53,5
56,1
65,0
80,3
23,3
Gross Margin
87
03
32
40
94
5,5
8,1
11,3
17,4
10,8
Operating Margin
15
12
86
68
26
2
9
2,3
6,4
6,6
Net Income
29
60
61
00
05
Balance Sheet (Millions)
2010
2011
2012
2013
Mar 2014
PT Karisma Aksara Mediatama Tbk
Total Asset
Total Liabilities
Retained Earning
Total Equity
156,0
06
109,8
86
(49,5
35)
46,1
20
159,2
57
112,1
77
(49,2
62)
47,0
80
188,8
35
139,3
94
(48,4
80)
49,4
41
187,3
75
131,5
35
(42,11
8)
55,8
40
192,6
00
130,1
54
(35,5
58)
62,4
46
Printing, publishing and sales of books comprised 82.8% of revenue while manufacturing and sales of office
supplies comprised another 13.6% of the revenue with the balance from sales of printed goods.
Overall, we feel that the financials reflect the openness of previously closely owned private enterprise trying
to minimize its tax expenses. A change in the company auditor from Herman Dody Tanumihardja & Rekan to
RSM AAJ Associates in 2013 also reflects the company increasing openness on its financial disclosures.
Key Financials
Gross Margin
Net Margin
ROE
ROA
Interest Coverage
2010
53.8%
0.2%
0.5%
0.1%
1.06x
2011
43.1%
0.7%
2.0%
0.6%
1.28x
2012
36.9%
1.3%
4.8%
1.3%
1.50x
2013
39.4%
3.1%
11.5%
3.4%
1.83x
Mar 2014
49.0%
13.8%
10.6%
3.4%
4.06x
Dividend Policy
Karisma has a dividend payout policy of 40% of its annual earnings. However, for FYE 2014, it will not pay any
dividend as it still has negative retained earnings.
Recommendation for participating in the IPO
-
Integrated operation from printing, publishing and retailing
Wide spread distribution of its stores in Indonesia
Specialized in education, medical and self-development books.
Strong market presence outside Jakarta and have own transport & distribution network
Indonesia’s growing population and new government emphasis on education.
Risks
-
Technology development leaning to e-book and electronic channel type of distribution.
Tight competition with Gramedia as the leading Indonesia integrated bookstores.
Bad precedent from listed Toko Buku Gunung Agung (“TKGA”) which has shifted its focus to coal
mining.
Board of Commissioners
President Commissioner
Commissioner
Independent Commissioner
Board of Directors
President Director
Daru Susilowati
Dyah Widhityaningsih
Ir. Andreas Kartawinata
Lyndon Saputra
2
PT Karisma Aksara Mediatama Tbk
Director
Director
Director
Independent Director
Rachmanadi P. Erlangga
Heidi Saputra
Sri Widodo, SE
Budiarto Winarto
Pre-IPO Shareholder (%)
Lyndon Saputra
Daru Susilowati
Dyah Widhtyaningsih
PT Speednet Kalimantan
Post-IPO & Employee Stock Allocation (%)
Lyndon Saputra
Daru Susilowati
Dyah Widhtyaningsih
PT Speednet Kalimantan
Public
Employee Stock Allocation
0.9718%
0.6478%
0.0001%
98.3803%
0.6803%
0.4535%
0.0001%
68.8661%
29.4000%
0.6000%
Karisma Group Structure
RESEARCH
3
PT Karisma Aksara Mediatama Tbk
Bagus Hananto
[email protected]
(62-21) 3190-1777 ext. 219
Marselius Taruna
[email protected]
(62-21) 3190-1777 ext. 220
[email protected]
(62-21) 3190-1777 ext. 222
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
(62-21) 3162-075
(62-21) 3162-063
(62-21) 3162-063
(62-21) 3162-062
(62-21) 3162-065
(62-21) 3162-025
INVESTMENT BANKING
Rahmat Sugiono Halim
EQUITY SALES
Agi Susanti
Ardylan Prasandy
Dick Hermanto
Pandu Endra
Siti Qobtiah
Supardi
PT ONIX Sekuritas
Deutsche Bank Building #15-04
Jl. Imam Bonjol No. 80
Jakarta 10310 Indonesia
Phone. (62-21) 3190-1777 (hunting)
Fax. (62-21) 3190-1616
DISCLAIMER:
This report was produced by PT ONIX Sekuritas, a member of Indonesia Stock Exchange (IDX). The Information
contained in this report has been obtained from public sources believed to be reliable and the options, analysis,
forecasts, projections and expectations contained in this report are based on such information and are expressions of
belief only. No representation or warranty, expressed or implied, is made that such information or opinion is accurate,
complete or verified and it should not be replied upon as such. This report is provided solely for the information of
clients of PT ONIX Sekuritas who has to make their own investment decisions without reliance on this report. Neither
PT ONIX Sekuritas nor any officer or employee of PT ONIX Sekuritas accept any liability whatsoever for any direct or
consequential loss arising from any use of this report or its contents. PT ONIX Sekuritas may be involved in
transactions contrary to any opinions herein to make markets, or have positions in the securities recommended
herein. PT ONIX Sekuritas may seek or will seek investment banking or other business relationships with the
companies within this report. This report is a copyright of PT ONIX Sekuritas, for further information please contact us
at (62-21) 3190-1777 or fax (62-21) 3190-1616.
4
5 July 2018
PT Karisma Aksara Mediatama Tbk
IPO Summary
Schedule (Tentative)
Book Building
Pricing
Effective Letter Obtained
Offering Period
Allotment
Distribution and Refund
Listing
05 - 18 September 2014
Rp 175 - Rp 240
26 September 2014
30 September - 03 October 2014
06 October 2014
07 October 2014
08 October 2014
IPO Structure
PT Karisma Aksara Mediatama Tbk (“Karisma”) is offering 535,821,500 shares or 30% of its paid-in capital in
this IPO. 2% of the offered shares are allocated to Employee Stock Allocation. IPO proceeds (estimated at Rp
93 – 128 billion) will be utilized for subsidiaries investment for their business expansion (63.9%), BNI Bank
loan repayment (21%), working capital (8%) and purchase of supporting equipments (7.1%). The subsidiaries
investment will be used for purchase of new printing equipments, opening new stores and meeting their
working capital needs. The joint lead underwriters are BCA Sekuritas and Kim Eng Securities. The pricing
implied a P/E ratio of 11.2x – 15.3x.
General Company Information
Established in 1995, Karisma, through its wholly owned subsidiaries, has become a fully integrated business
in printing, publishing and retailing education and religious books in Indonesia. The company currently
operates 58 retail branches in almost every province in Indonesia with average store size of 400-500 m2. The
retail stores open seven days a week. The company plans to open another 6 stores this year and another 15
stores next year mainly in eastern part of Indonesia. Karisma has 392 permanent employees as 31 July 2014.
The company, through its subsidiary (PT Binarupa Aksara) publishes mainly books that focus on child
development, self-development and medical. It is one of the biggest publishers of medical books in
Indonesia. Another subsidiary, PT Gospel Karisma Mediatama, concentrates on Christianity books. PT
Binarupa Aksara is also a printer which accepts printing order from other publishers (52%) in addition to
printing its own publication (48%). It currently holds license to publish more than 6,000 titles and has two
printing facilities in Depok and South Tangerang.
The company is also one of the many e-commerce companies in Indonesia. Operating under the website of
www.tokobukukarisma.com , it offers more than 14,000 books titles online as well as office supplies.
Another subsidiary, PT Paperplus Indotama, manufactures and retails office supplies especially from paper &
plastic products (e.g. folder, envelope, printing paper, etc.) under the brand name of Paperplus store.
Financials
Income Figures (Millions)
2010
2011
2012
2013 Mar 2014
99,5
130,0
176,3
203,8
47,7
Revenue
84
66
77
25
72
53,5
56,1
65,0
80,3
23,3
Gross Margin
87
03
32
40
94
5,5
8,1
11,3
17,4
10,8
Operating Margin
15
12
86
68
26
2
9
2,3
6,4
6,6
Net Income
29
60
61
00
05
Balance Sheet (Millions)
2010
2011
2012
2013
Mar 2014
PT Karisma Aksara Mediatama Tbk
Total Asset
Total Liabilities
Retained Earning
Total Equity
156,0
06
109,8
86
(49,5
35)
46,1
20
159,2
57
112,1
77
(49,2
62)
47,0
80
188,8
35
139,3
94
(48,4
80)
49,4
41
187,3
75
131,5
35
(42,11
8)
55,8
40
192,6
00
130,1
54
(35,5
58)
62,4
46
Printing, publishing and sales of books comprised 82.8% of revenue while manufacturing and sales of office
supplies comprised another 13.6% of the revenue with the balance from sales of printed goods.
Overall, we feel that the financials reflect the openness of previously closely owned private enterprise trying
to minimize its tax expenses. A change in the company auditor from Herman Dody Tanumihardja & Rekan to
RSM AAJ Associates in 2013 also reflects the company increasing openness on its financial disclosures.
Key Financials
Gross Margin
Net Margin
ROE
ROA
Interest Coverage
2010
53.8%
0.2%
0.5%
0.1%
1.06x
2011
43.1%
0.7%
2.0%
0.6%
1.28x
2012
36.9%
1.3%
4.8%
1.3%
1.50x
2013
39.4%
3.1%
11.5%
3.4%
1.83x
Mar 2014
49.0%
13.8%
10.6%
3.4%
4.06x
Dividend Policy
Karisma has a dividend payout policy of 40% of its annual earnings. However, for FYE 2014, it will not pay any
dividend as it still has negative retained earnings.
Recommendation for participating in the IPO
-
Integrated operation from printing, publishing and retailing
Wide spread distribution of its stores in Indonesia
Specialized in education, medical and self-development books.
Strong market presence outside Jakarta and have own transport & distribution network
Indonesia’s growing population and new government emphasis on education.
Risks
-
Technology development leaning to e-book and electronic channel type of distribution.
Tight competition with Gramedia as the leading Indonesia integrated bookstores.
Bad precedent from listed Toko Buku Gunung Agung (“TKGA”) which has shifted its focus to coal
mining.
Board of Commissioners
President Commissioner
Commissioner
Independent Commissioner
Board of Directors
President Director
Daru Susilowati
Dyah Widhityaningsih
Ir. Andreas Kartawinata
Lyndon Saputra
2
PT Karisma Aksara Mediatama Tbk
Director
Director
Director
Independent Director
Rachmanadi P. Erlangga
Heidi Saputra
Sri Widodo, SE
Budiarto Winarto
Pre-IPO Shareholder (%)
Lyndon Saputra
Daru Susilowati
Dyah Widhtyaningsih
PT Speednet Kalimantan
Post-IPO & Employee Stock Allocation (%)
Lyndon Saputra
Daru Susilowati
Dyah Widhtyaningsih
PT Speednet Kalimantan
Public
Employee Stock Allocation
0.9718%
0.6478%
0.0001%
98.3803%
0.6803%
0.4535%
0.0001%
68.8661%
29.4000%
0.6000%
Karisma Group Structure
RESEARCH
3
PT Karisma Aksara Mediatama Tbk
Bagus Hananto
[email protected]
(62-21) 3190-1777 ext. 219
Marselius Taruna
[email protected]
(62-21) 3190-1777 ext. 220
[email protected]
(62-21) 3190-1777 ext. 222
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
(62-21) 3162-075
(62-21) 3162-063
(62-21) 3162-063
(62-21) 3162-062
(62-21) 3162-065
(62-21) 3162-025
INVESTMENT BANKING
Rahmat Sugiono Halim
EQUITY SALES
Agi Susanti
Ardylan Prasandy
Dick Hermanto
Pandu Endra
Siti Qobtiah
Supardi
PT ONIX Sekuritas
Deutsche Bank Building #15-04
Jl. Imam Bonjol No. 80
Jakarta 10310 Indonesia
Phone. (62-21) 3190-1777 (hunting)
Fax. (62-21) 3190-1616
DISCLAIMER:
This report was produced by PT ONIX Sekuritas, a member of Indonesia Stock Exchange (IDX). The Information
contained in this report has been obtained from public sources believed to be reliable and the options, analysis,
forecasts, projections and expectations contained in this report are based on such information and are expressions of
belief only. No representation or warranty, expressed or implied, is made that such information or opinion is accurate,
complete or verified and it should not be replied upon as such. This report is provided solely for the information of
clients of PT ONIX Sekuritas who has to make their own investment decisions without reliance on this report. Neither
PT ONIX Sekuritas nor any officer or employee of PT ONIX Sekuritas accept any liability whatsoever for any direct or
consequential loss arising from any use of this report or its contents. PT ONIX Sekuritas may be involved in
transactions contrary to any opinions herein to make markets, or have positions in the securities recommended
herein. PT ONIX Sekuritas may seek or will seek investment banking or other business relationships with the
companies within this report. This report is a copyright of PT ONIX Sekuritas, for further information please contact us
at (62-21) 3190-1777 or fax (62-21) 3190-1616.
4