MGRO RECEIVES INVESTOR AWARDS 2022
28 July 2022
Indonesia is one of the countries that managed to get through the pressure of the Covid-19 pandemic faster. It can be seen from a number of Indonesia's macroeconomic indicators that show a positive trend. Indonesia's economic recovery has been visible since last year.
The momentum for recovery is really being utilized by issuers listed on the Indonesia Stock Exchange (IDX). The majority of issuers scored significant performance growth in the 2021 financial year. Not a few whose performance grew very impressively, because they were able to optimize existing opportunities, such as the increase in food and energy commodity prices and the high demand for health services.
This condition was reflected in the issuer ranking process (Investor Awards) held by Investor Magazine this year. From the long assessment process carried out by the Investor Awards 2022 Jury Team, six best issuers were selected from a total of 787 issuers listed on the IDX as of May 2022.
The six issuers are PT Adaro Energy Indonesia Tbk (ADRO), PT Indo Tambangraya Megah Tbk (ITMG), PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO), PT Medikaloka Hermina Tbk (HEAL), PT Timah Tbk (TINS), and PT Mark Dynamics Indonesia Tbk (MARK).
The six Top Performing Listed Companies were selected after a screening process based on market capitalization. This categorization aims to provide room for fair competition. The categories consist of Best Issuers with Market Capitalization above IDR 25 Trillion won by PT Adaro Energy Indonesia Tbk, PT Indo Tambangraya Megah Tbk, and PT Industri Jamu Dan Farmasi Sido Muncul Tbk. Market Capitalization IDR 5 Trillion - 25 Trillion won by PT Medikaloka Hermina Tbk and PT Timah Tbk, and Market Capitalization IDR 1 Trillion - 5 Trillion won by PT Mark Dynamics Indonesia Tbk.
Chairman of the Jury of Investor Awards 2022, Prof. Roy Sembel Ph.D explained, Investor Awards 2022 carries the theme “Thriving Post Pandemic Recovery, Amidst Heightening Geopolitical Rivalry” to become an assessment reference in determining the six issuers who won the Top Performing Listed Companies 2022.
The jury assessed that the best issuers were able to optimize the momentum of national economic recovery, rising commodity prices in the global market, and high demand for health services or windfall gains in the short term. In addition, they also have a good strategy and commitment in utilizing windfall gains in the long term.
“At the interview stage with the issuer's management, the Jury Team has challenged the prospective winners of the Investor Awards to not only see opportunities such as windfall gains. Prospective winners must be able to take advantage of the windfall gain to improve capacity building from various sides, as well as human capital, organization, infrastructure, and products that they need to develop further,” added Prof Roy, who is the Distinguished Chair in Finance & Investment at IPMI International Business School.
Based on the presentation during the interview, Roy continued, the Jury believes that the Investor Awards winners have prepared a number of long-term growth strategies, because commodity windfall gains are temporary. “They already have preparations in anticipation of this (decline in commodity prices), so we are confident in choosing six issuers as winners of the 2022 Investor Awards,” he added.
The jury is also very concerned about the issuer's commitment to developing the quality of human resources, the environment, and corporate social responsibility (CSR). These components must be an integral part of the company, in addition to their commitment to implementing the principles of good corporate governance (GCG).
“This commitment is important to measure the level of sustainability of the issuer in the long term,” said jury member Lilly Widjaja.
Before entering the interview stage, the judging process refers to very strict criteria. The judging stage begins with an initial selection that uses eight criteria. Issuers that pass the initial selection are then ranked based on eight indicators to measure the strength of fundamental and technical performance.
Issuers that pass this second stage are determined as nominees to be included in the questionnaire or polling stage. Thus, the public participated in providing an assessment through a questionnaire that was distributed in a measurable manner to stakeholders and capital market players. Respondents selected included investors (individuals and institutions), analysts, and investment managers. Furthermore, the last stage is an interview of the best issuer nominees with the jury until the determination of the winner of the Investor Awards 2022.
In addition to the six Top Performing Listed Companies, the jury also determined 29 winning issuers with the best performance in their respective sectors. Investor Magazine also gave Special Awards to three issuers. PT Bank Rakyat Indonesia Tbk (BBRI) received appreciation for its contribution to the national economy, especially the development of MSMEs during the Covid-19 pandemic. Meanwhile, PT WIR Asia Tbk (WIRG) and PT Adaro Minerals Indonesia Tbk (ADMR) as The Best IPO 2022.
29 Sector Champions
As in previous years, the 2022 Investor Awards are also given to the best performing issuers in each sector. This time 29 issuers were named as sector winners, a significant increase compared to the 2021 sector winners of 17 issuers. The addition of sector winners is adjusted to the new industrial sector classification IDX Industrial Classification (IDX-IC) implemented by the Indonesia Stock Exchange on January 25, 2021. The new IDX-IC classification is based on the principle of market exposure. In contrast to the previous classification in the Jakarta Stock Industrial Classification (JASICA) which was based on the economic activity of issuers.
So, if in the JASICA classification there are 9 sectors with 56 sub-sectors, the IDX-IC, the number of sectors increases to 12 sectors with 35 sub-sectors, 69 industries, and 130 sub-industries, so the coverage is broader.
The 29 issuers selected as sector champions consist of the Coal Sector (PT Bukit Asam Tbk), the Oil & Gas Sector (PT Energi Mega Persada Tbk), the Mining Support Sector (PT Pelita Samudera Shipping Tbk), the Metal & Mineral Industry Sector (PT Vale Indonesia Tbk), the Chemicals & Construction Materials Industry Sector (PT Surya Esa Perkasa Tbk), Packaging Industry Sector (PT Panca Budi Idaman Tbk), Forestry, Pulp & Paper Sector (PT Pinago Utama Tbk), Building & Electrical Supplies Sector (PT Arwana Citramulia Tbk), Machinery & Heavy Equipment Sector (PT United Tractors Tbk), Commercial & Professional Services Sector (PT Multifiling Mitra Indonesia Tbk).
Furthermore, the Multi Sector Holding Company Sector (PT ABM Investama Tbk), Agriculture & Livestock Sector (PT Mahkota Group Tbk), Food & Beverage Sector (PT Indofood Sukses Makmur Tbk), Cigarettes, Pharmaceuticals & Household Supplies Sector (PT Victoria Care Indonesia Tbk), Retail Trade Sector (PT Sumber Alfaria Trijaya Tbk), Textile & Garment Sector (PT Indo-Rama Synthetics Tbk), Restaurant, Hotel & Tourism Sector (PT Eastparc Hotel Tbk), Automotive & Components Sector (PT Selamat Sempurna Tbk), Health Care Provision Sector (PT Mitra Keluarga Karyasehat Tbk), Banking Sector (PT Bank Central Asia Tbk).
Then Multifinance Sector (PT Mandala Multifinance Tbk), Securities Sector (PT Yulie Sekuritas Indonesia), Insurance Sector (PT Victoria Insurance Tbk), Holding & Investment Company Sector (PT Saratoga Investama Sedaya Tbk), Technology Sector (PT Metrodata Electronics Tbk), Infrastructure & Transportation Services Sector (PT Indonesia Kendaraan Terminal Tbk), Logistics & Delivery Sector (PT Samudera Indonesia Tbk), Telecommunication Sector (PT Telkom Indonesia (Persero) Tbk), and Media & Entertainment Sector (PT MNC Digital Entertainment Tbk).
There are three business sectors that were determined to be without winners this year, namely the Property & Real Estate Sector and the Building Construction Sector. In addition to inadequate stock returns, the fundamental performance of these three sectors is also mostly minus referring to the predetermined assessment indicators.
Initial Selection
Based on the agreement of the Jury Team, the ranking refers to 8 preliminary selection requirements to filter out issuers that are deemed worthy of being included in the ranking. The first requirement is the issuer's compliance in publishing the financial statements for the 2021 fiscal year. Publication of annual financial statements is no later than May 31, 2021. Second, issuers involved in the rating must have been listed on the IDX before 2021. Third, not receiving disclaimer and adverse opinions from public accountants. Fourth, no net loss and operating loss in 2021. Fifth, have equity of not less than IDR 100 billion.
The sixth requirement is that the issuer's shares are classified as active (during the period June 1, 2021 - May 31, 2022, they must not have been traded for 10 weeks or more). Seventh, the financial statements of the rated issuers must have a December financial year, and eighth, have positive equity for the last two years.
After going through the initial selection stage of 787 issuers, only 390 issuers passed the initial selection to be ranked and 397 issuers did not pass the selection. This time, 79 issuers were blocked from the initial selection because they were late in submitting their financial reports until May 31, 2020. In addition, 116 issuers were blocked because their equity was less than IDR 100 billion, and 233 issuers did not qualify because they suffered operating losses and net losses during 2021.
Criteria of Ranking
After passing the initial selection stage, the ranking process was then carried out on 390 issuers. The ranking refers to eight criteria including: (1) stock return for one year (June 1, 2021 - May 31, 2022), (2) stock liquidity and (3) stock volatility for the same period, (4) three-year sales growth, (5) net operating margin (NM), (6) return on equity (ROE), (7) asset turnover (ATO), and (8) three-year operating profit growth.
Referring to the ranking results reinforced by a poll of 200 respondents (analysts, investment managers, pension funds, insurance, individual investors, and capital market observers) and interviews with nominated directors, the Jury determined six issuers as the Top Performing Listed Companies 2022. This year, the Jury also selected 29 Best Issuers per Sector, and 100 issuers as 100 Best Listed Companies 2022.