14 January 2019

Bisnis.com, JAKARTA --- Plantation company PT Mahkota Group Tbk has allocated IDR 200 billion in capital expenditure this year.

Corporate Secretary of Mahkota Group Elvi said, capital expenditure will be used to complete refinery plants, stockpile tanks, and so on. “Capital expenditure for 2019 is around IDR 200 billion,” he said, last weekend.

EMGRO assesses that there is already a lot of competition in the CPO business, so there is quite intense competition. To anticipate this, the company began targeting palm oil derivative products.

The construction of the refinery plant reached IDR 330 billion. This new plant will produce CPO derivative products such as olein or cooking oil and sterin, as raw materials for margarine or oleochemicals.

Elvi said, to obtain higher profits, the company must create products with added value. In 2018, the profit target of issuers coded as MGRO shares was IDR 50 billion and this year's target is IDR 123 billion.

In order to launch cooking oil production in the second semester of 2019, the company has provided stock since the end of last year. The company also slowed down CPO sales at the end of last year.

MGRO projects sales in 2019 to potentially reach IDR 5 trillion, or an increase of 2.5 times from last year's target, by turning around. This year, the contribution of sales from refineries is estimated to be approximately 40% of the target.

Source : https://market.bisnis.com/read/20190113/192/878127/mahkota-group-mgro-alokasikan-capex-rp200-miliar