29 November 2018

​Medan - The entry of PT Mahkota Group Tbk (MGRO), a palm oil issuer from North Sumatra, into the index list of The Financial Times Stock Exchange (FTSE) micro capitalization category or micro caps in the December 2018 period represents international institutional recognition of the company's fundamentals and prospective business prospects.

​MGRO is included in the FTSE micro caps index on the grounds that it has just carried out an initial public offering (IPO) this year. The company's entry into FTSE also increases investor confidence to spur transactions.

“This is a benefit for investors. With the FTSE list, as well as MSCI, the assumption is that it will be chosen by foreign investors so that they can make these shares as an option for making transactions,” said Reza Priyambada from PT Binaartha Sekuritas, Wednesday (11/28/2018).

MGRO President Director Usli Sarsi thanked investors for their support, allowing the company to be included in the FTSE micro caps. “We will maintain investor confidence by further improving our performance.” Usli said.

The company's performance consistently grew on the back of increased economies of scale, along with increased production volumes and cost efficiency. As of September 2018, MGRO posted revenues of IDR 1.5 trillion with a net profit of IDR 45 billion, improving compared to a loss in the same period in 2017 of IDR 17 billion.

As a business expansion, MGRO is also building a refinery plant. Currently the company is preparing the foundation for building structures and machinery. “It is targeted that in July 2019 there will be commissioning soon,” he added.

​By the end of December 2018, all refinery foundation construction will be completed. It is estimated that the construction progress at the end of December will reach 25%. In January 2019, the building structure project and machinery installation will begin. (Adv)

Source : Harian Bisnis Indonesia Kamis, 29 November 2018