A Fundamental Analysis of PT Jasuindo Tiga Perkasa Tbk (JTPE)

PT Jasuindo Tiga Perkasa Tbk (JTPE) is a prominent Indonesian company operating in the security printing and integrated business document solutions sector. Listed on the Indonesia Stock Exchange (IDX), JTPE's core business revolves around products requiring high levels of security and authentication. For investors seeking to understand the intrinsic value and future prospects of this niche player, a detailed fundamental analysis is essential.

Company and Business Segments Overview

Established as a leader in its field, Jasuindo Tiga Perkasa primarily serves both government entities and major corporate clients, particularly in the banking sector. Its business model is segmented into four key areas, which collectively contribute to its revenue stability and growth:

Identity Solution: Providing highly secure identification documents for governments and private institutions, including passports, ID cards, driver's licenses, and other official identification products. This segment benefits from government-mandated security needs.
Payment Solution: Focusing on secure and durable payment solutions, such as credit and debit cards, cheques, and other proprietary payment instruments, primarily serving the banking industry.
Brand Protection / Track & Trace: Developing security features like tax stamps, holograms, labels, and secure packaging to combat fraud and ensure product authenticity, helping governments and companies protect their brands and revenue.
Commercial Printing: Offering customizable, non-security-related printing services, including high-volume commercial documents and specialized products like calendars, agendas, and gaming/entertainment products.

The company's strong presence in the security document market, particularly with captive markets like the government and banking sectors, provides a reliable and recurring revenue stream, distinguishing it from general commercial printing companies.

Financial Performance and Profitability

An examination of JTPE's recent financial reports shows a generally robust and recovering performance, though with some volatility.

Revenue and Profit Growth:

2024 Full Year Performance: JTPE reported a consolidated net profit of Rp 253.668 Billion in 2024, a notable increase of approximately 12% year-on-year (YoY) from 2023's figure (around Rp 207.6 Billion). This growth signifies the company's ability to capitalize on market opportunities and control costs effectively.
Quarterly Insights: While the full-year trend is positive, quarterly results can show fluctuations. For instance, the net profit for the first half of 2025 (H1 2025) was reported at Rp 54.88 Billion, showing a 10% YoY increase, while the first half of 2024 (H1 2024) net profit was Rp 80.3 Billion, suggesting seasonal or project-based variations in revenue recognition.

Key Profitability Ratios (Based on 2024 Full Year Data):

Gross Margin: The company generally maintains a healthy gross margin. Based on 2024 figures, the Gross Margin was around 22.1%.
Net Profit Margin (NPM): The NPM for 2024 stood at approximately 11.3%. This indicates a good level of efficiency in converting revenue into actual profit, suggesting effective management of operating and non-operating expenses. While a margin below 10% is sometimes considered poor in a general analysis, an 11.3% NPM is respectable within its specific industry context.
Return on Equity (ROE): The ROE, a measure of how efficiently the company uses shareholders' equity to generate profit, was reported at a strong 17.6% in 2022, though it tends to fluctuate. A high ROE generally indicates superior management and a financially healthy company.

Balance Sheet and Solvency

A strong balance sheet is a hallmark of fundamental strength:

Assets and Equity: As of the third quarter of 2024 (9M24), JTPE's Total Assets were around Rp 1.850.4 Billion, with Total Equity at Rp 1.167.5 Billion. This demonstrates a solid capital structure.
Debt-to-Equity Ratio (DER): The DER, which measures the proportion of debt to equity, was around 0.58x (9M24 data). A DER significantly less than 1.0x is generally considered safe, indicating the company relies more on equity financing than debt. This low leverage provides a strong buffer against economic downturns and allows flexibility for future investment.

Valuation Metrics

To determine if JTPE stock is currently a good value, we examine its key valuation multiples:

Price-to-Earnings (P/E) Ratio: Based on the stock price of Rp 306 and Earnings Per Share (EPS) of Rp 34.67 (as of August 2025, using TTM/Trailing Twelve Months data), JTPE’s P/E ratio is around 8.83x. This P/E is relatively low, especially when compared to the broader IDX market and its historical average. A low P/E ratio suggests that the stock might be undervalued relative to its earnings.
Price-to-Book (P/B) Ratio: With a Book Value Per Share (BVPS) of around Rp 170.38 (9M24) and the stock price of Rp 306, the P/B ratio stands at approximately 1.80x. While a P/B above 1.0x suggests a premium to its net asset value, a P/B of 1.80x is often considered reasonable for a company with consistent profitability and a good ROE, suggesting that the market values its intangible assets (e.g., its government contracts, secure technology, and brand reputation) higher than its physical assets alone.
Dividend Yield and Policy: JTPE has a consistent dividend payment history. The company proposed a dividend of Rp 24 per share from its 2023 earnings, with a Dividend Payout Ratio (DPR) ranging between 50-70% in recent years. This suggests a commitment to returning value to shareholders. Based on the Rp 24 dividend and a price of Rp 306, the dividend yield is approximately 7.84%. This high yield is a very attractive factor for income-focused investors.

Key Strengths and Investment Considerations

Strengths:

Niche Market and High Barrier to Entry: The security printing business, particularly for government documents and bank cards, is a niche with high regulatory and technological barriers to entry, protecting JTPE from significant direct competition.
Stable Demand: Demand for security documents (passports, ID cards, bank cards) is largely non-cyclical and driven by continuous government and institutional needs, providing stable and predictable revenue.
Strong Balance Sheet: Low debt levels and a healthy equity position provide financial resilience.
Attractive Dividend Yield: The high dividend yield makes the stock appealing for investors seeking regular income.

Considerations:

Digital Disruption: The long-term shift towards fully digital ID solutions and mobile payments could pose a future threat to its physical product segments, though the company has been active in providing digital security integration.
Government Contract Reliance: A significant portion of its revenue is derived from government contracts (e.g., the Police Corps for driving licenses), making it susceptible to changes in government policy or tender processes.
Fluctuating Quarterly Earnings: Earnings can be volatile due to the timing of large project orders.

Conclusion

PT Jasuindo Tiga Perkasa Tbk (JTPE) is a fundamentally sound company operating in a secure, high-barrier-to-entry market segment. Its strong profitability, evidenced by its healthy margins and robust ROE, combined with a highly conservative debt profile, paints a picture of financial stability.

From a valuation perspective, the stock appears to offer a compelling case for fundamental investors. Its low P/E ratio suggests that the market may be undervaluing its consistent earnings and strong financial position. Furthermore, the high dividend yield is a significant bonus. Investors should, however, remain mindful of the long-term risk of digital transformation and the company's reliance on major contracts. Overall, Jasuindo Tiga Perkasa presents itself as a potentially undervalued security stock with strong defensive qualities and attractive income generation.

A Fundamental Analysis of PT Jasuindo Tiga Perkasa Tbk (JTPE)