A Fundamental Analysis of PT Graha Prima Mentari Tbk (IDX: GRPM)
Fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial, and other qualitative and quantitative factors. For investors considering PT Graha Prima Mentari Tbk (GRPM), a closer look at the company's fundamentals reveals key insights into its business health and potential. As an official distributor of well-known beverages like Coca-Cola, Fanta, and Sprite, GRPM operates in the dynamic and competitive fast-moving consumer goods (FMCG) sector in Indonesia.
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| A Fundamental Analysis of PT Graha Prima Mentari Tbk (IDX: GRPM) |
Company Profile and Business Overview
PT Graha Prima Mentari Tbk, with the stock code GRPM on the Indonesia Stock Exchange (IDX), is a distribution company primarily focused on beverages. Established in 2016, the company has grown its distribution network across several major islands in Indonesia, serving thousands of retail outlets. Its core business is the distribution of products from Coca-Cola Europacific Partners, including a variety of soft drinks and other beverages. The company also recently expanded its partnerships, notably with PT Kino Indonesia Tbk, in December 2023, broadening its product portfolio and distribution reach. This strategic expansion is a positive sign, indicating the company's efforts to diversify and strengthen its market position.
The company's business model relies on a well-established and expanding distribution network, which is a significant factor in the FMCG industry. The success of a distributor is directly tied to the efficiency of its logistics and the strength of its relationships with both suppliers and retailers. GRPM's history and continued expansion suggest it has built a reliable operation, which is a qualitative strength for the business.
Financial Performance and Key Ratios
Analyzing GRPM's financial statements provides a quantitative view of its health. Recent financial reports show a mixed but evolving performance.
Profitability
Net Income: GRPM's net income saw a notable increase in 2023, reaching Rp 4.4 billion, a significant jump from Rp 2.3 billion in 2022. However, this trend reversed in 2024, with net income declining to Rp 2.6 billion, representing a decrease from the previous year. This fluctuation is a key point for investors to monitor, as it could indicate varying market conditions, increased operational costs, or strategic investments that impact short-term profitability.
Gross and Net Margins: The company's financial reports for 2024 show a gross margin of 7.7% and a net margin of 0.4%. These figures indicate that while the company's core operations are profitable, its net profitability is quite thin. This is not uncommon in the distribution business, where margins are often low, and success depends on high sales volume and efficient cost management.
Sales: In the second quarter of 2025, the company recorded sales of Rp 341.9 billion. While a specific comparison to the previous year's quarter is not available, the company has stated that its first half of 2025 profit already exceeded 75% of its full-year target, suggesting a positive trajectory in the current fiscal year.
Balance Sheet and Liquidity
Assets and Liabilities: As of June 30, 2025, GRPM's total assets were approximately Rp 153.95 billion, with total liabilities of around Rp 91.95 billion. The company's current assets of Rp 113.14 billion were sufficient to cover its short-term liabilities of Rp 90.99 billion, indicating a healthy liquidity position.
Cash and Equivalents: Cash and cash equivalents decreased significantly from Rp 18.79 billion at the end of 2024 to Rp 5.74 billion by mid-2025. This may be due to operational needs or investments, and a closer look at the cash flow statement would be necessary to understand the full picture.
Valuation
Valuation ratios help determine if a stock is fairly priced. As of September 2025, GRPM has a Price-to-Earnings (P/E) ratio of 49.4x, which is considerably higher than the sector average of 15.0x. A high P/E ratio suggests that the stock may be overvalued relative to its earnings, or that investors have high expectations for future growth. The company's Price-to-Book (P/B) ratio of 0.2x is very low, especially compared to the peer average of 0.7x. This indicates the stock is trading below its book value, which could signal that it's undervalued. The conflicting signals from the P/E and P/B ratios require a deeper investigation into the company's earnings and asset base to form a complete view.
Dividend Policy and Shareholder Value
GRPM has a policy of paying dividends, with a payout ratio for 2025 projected at Rp 1 per share, which translates to a yield of 1.8% to 3.5%. The company's trailing twelve-month (TTM) dividend yield is 1.85%, which is slightly below the Indonesian average for dividend-paying stocks. This indicates that while the company is committed to returning value to shareholders, the dividend yield may not be the primary attraction for investors.
Risks and Opportunities
A fundamental analysis would be incomplete without considering the risks and opportunities facing the company.
Risks: The FMCG distribution business is highly competitive, with tight margins. GRPM faces risks from price fluctuations, competition, and changes in consumer demand. Its reliance on major brands like Coca-Cola also means that any shifts in those relationships could impact its business. The recent decline in net income for 2024 is also a risk factor that needs to be carefully monitored.
Opportunities: The Indonesian market, with its large and growing population, offers significant potential for the FMCG sector. GRPM's continued expansion and diversification of its product portfolio, as seen with the partnership with Kino Indonesia, position it well to capture more market share. The company's stated goal of "Expansion and Strengthening Synergy" from its 2024 Annual Report suggests a proactive approach to growth.
Conclusion
In conclusion, a fundamental analysis of PT Graha Prima Mentari Tbk (GRPM) reveals a company with a solid business foundation and a history of growth in a competitive industry. While its recent financial performance shows a dip in net income, its strong liquidity and strategic expansion plans are positive signs. The high P/E ratio suggests high market expectations for future growth, while the low P/B ratio could signal undervaluation. For investors, the decision to invest in GRPM should be based on a thorough evaluation of these factors, including a careful consideration of its growth prospects against the backdrop of its current valuation and the inherent risks of the FMCG distribution sector.
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