A Fundamental Analysis of PT Kertas Basuki Rachmat Indonesia Tbk (KBRI)
PT Kertas Basuki Rachmat Indonesia Tbk (KBRI) is a company operating in the paper industry, listed on the Indonesia Stock Exchange (IDX) with the ticker code KBRI. For investors, conducting a fundamental analysis of this stock is critical, but it's important to recognize that KBRI is an unusual case. The company's stock has been suspended from trading for a long period, and its operational and financial health has been a significant concern. This article provides a comprehensive overview of KBRI's business, its recent financial performance, and the key factors that make it a highly risky investment.
 |
| A Fundamental Analysis of PT Kertas Basuki Rachmat Indonesia Tbk (KBRI) |
Company Overview and Business History
PT Kertas Basuki Rachmat Indonesia Tbk was first commercially operational in 1978. Through its subsidiary, PT Kertas Basuki Rachmat, the company primarily produces various paper products, including writing paper, printing paper, and cultural paper. These products are used for office needs, books, and other print media. The company's headquarters are in Jakarta, with production facilities located in Banyuwangi, East Java.
However, over the years, the company has faced severe operational and financial challenges. These issues have led to a significant decline in its business activities and a state of prolonged inactivity.
Financial Performance Analysis
The financial performance of KBRI has been a major red flag for investors and the stock exchange. The company's most recent available financial reports show a company in deep distress.
Revenue and Profitability: The company has a history of reporting net losses and a drastic decline in revenue. As of late 2019, its revenue had dropped to just a few hundred million rupiah, a significant decline from previous years. This indicates a near-complete halt in its business operations. The company has also consistently failed to report its financial statements on time, a major violation of IDX regulations. The financial losses have been substantial, with operating and net losses running into the tens of billions of rupiah.
Solvency and Liquidity: The company's balance sheet has also been in a precarious state. The continuous losses have eroded its equity, and the company has been struggling with high debt and low cash reserves. This makes its solvency and liquidity positions very weak, casting serious doubts on its ability to meet its financial obligations.
The lack of recent, audited financial statements makes it impossible to perform a current fundamental analysis. The information available is several years old and points to a company that is not financially healthy.
Stock Status and Investment Risks
The most critical aspect of a fundamental analysis of KBRI is its current status on the IDX.
Trading Suspension: The Indonesia Stock Exchange (IDX) has suspended the trading of KBRI's shares for an extended period, starting around 2015. This suspension is due to the company's failure to meet its obligations, including not submitting its financial reports and not conducting a public expose. This means investors cannot buy or sell the stock on the market.
Delisting Risk: The prolonged suspension and the company's failure to rectify its issues have put it at risk of forced delisting from the stock exchange. Delisting would mean that the stock would no longer be traded on the public market, and investors would be left with a stock that is difficult, if not impossible, to sell. The price of the stock has been frozen at Rp 50 for years, reflecting this dormant state.
Shareholder Ownership: Despite the company's poor performance and delisting risk, there have been some unusual movements in its ownership structure. For example, reports have noted a significant acquisition of shares by institutions, including the Attorney General's Office, which adds a layer of complexity and speculation to the stock, but does not change the dire fundamental situation.
Valuation Metrics
Given the company's current state, traditional valuation metrics are meaningless and should not be used.
Price-to-Earnings (P/E) Ratio: The P/E ratio is not applicable as the company has been reporting persistent losses, resulting in negative earnings.
Price-to-Book (P/B) Ratio: The P/B ratio is also not a reliable indicator, as the company's book value is likely negative or highly questionable due to years of losses and asset impairments. The market price of Rp 50 is an artificial floor set by the IDX, not a reflection of any intrinsic value.
Dividend Policy: The company has not paid dividends and has no prospect of doing so given its financial situation.
Conclusion
A fundamental analysis of PT Kertas Basuki Rachmat Indonesia Tbk (KBRI) reveals a company with extremely weak fundamentals and an exceptionally high level of risk. The company has a history of financial losses, has been operationally inactive, and has consistently failed to comply with IDX regulations.
The trading suspension and the looming threat of forced delisting are the most critical factors to consider. Investing in KBRI is not a matter of analyzing financial ratios but of accepting a bet on a highly unlikely corporate turnaround. For all practical purposes, the stock is currently not tradable, and its future as a publicly listed entity is in serious jeopardy. It represents a quintessential example of a stock that should be avoided by all but the most speculative and risk-tolerant investors.