Skip to main content

Fundamental Analysis of PT Argha Karya Prima Industry Tbk (AKPI) Stock

Image
By

 

Fundamental Analysis of PT Argha Karya Prima Industry Tbk (AKPI) Stock

I. Introduction and Company Profile

worldreview1989 - PT Argha Karya Prima Industry Tbk (stock code: AKPI) is an Indonesian-based company primarily engaged in the manufacturing and distribution of flexible packaging films. Operating within the materials/manufacturing sector, particularly in plastic and packaging, AKPI's products are essential inputs for various consumer goods industries. Understanding its fundamental condition requires a deep dive into its financial health, profitability, valuation, and market outlook.

Fundamental Analysis of PT Argha Karya Prima Industry Tbk (AKPI) Stock
Fundamental Analysis of PT Argha Karya Prima Industry Tbk (AKPI) Stock


II. Financial Performance Review (Recent Years)

An analysis of AKPI's financial statements reveals a period of fluctuating performance and significant challenges, particularly concerning profitability.

A. Revenue and Gross Profit

Metric (in Billion IDR)Year 2022Year 2023Year 2024 (E)1Q 2025 (E)
Net Sales3,105.632,702.96~2,950~725.47 (Q2 2025)
Gross Profit375.02344.71N/AN/A

  • Revenue Trend: While Net Sales showed growth up to 2022 (based on Annual Report 2022), the company faced a decrease in 2023, possibly due to market factors or rising input costs. Recent quarterly data suggests sales are in the IDR 700 billion range per quarter.

  • Profitability Pressure: The gross margin generally remains in the $8\%$ to $11\%$ range, indicating that the company operates in a competitive industry where the cost of goods sold (COGS), including raw materials like resin and energy, heavily impacts profitability.

B. Net Profit and Earnings Per Share (EPS)

AKPI's net profit has been highly volatile, with recent years showing significant swings.

Metric (in Billion IDR)Year 2022Year 2023Year 2024 (E)1Q 2025 (E)
Net Profit (Loss)211.7 (Profit)(29.6) (Loss)10.6 (Profit)1.3 (Profit)
EPS (IDR)~346(48.43)17.362.12

  • Volatility: The transition from a substantial profit in 2022 to a net loss in 2023 is a major red flag, although the company managed to post a modest net profit in 2024 and 1Q 2025.

  • Net Profit Margin (NPM): The NPM is extremely low in recent profitable periods, often below $1\%$ ($0.4\%$ in 2024), indicating thin profit margins and vulnerability to slight shifts in costs or sales prices.

  • Negative Trend Concern: The company has struggled to maintain consistent positive EPS, with some reports noting it had not posted positive EPS for three consecutive years at one point. This inconsistency raises concerns about earnings quality and sustainability.

III. Key Financial Ratios Analysis

Fundamental analysis heavily relies on key ratios to gauge financial health.

A. Liquidity and Solvency

RatioValue (MRQ/Recent)Interpretation
Current Ratio$1.19$Generally considered liquid (above 1.0). The company has more current assets than current liabilities, suggesting it can meet its short-term obligations.
Debt to Equity Ratio (DER)$0.67$Considered healthy (below 1.0), meaning the company's equity base is larger than its total debt. This indicates manageable leverage and less financial risk.

The solvency of AKPI appears relatively sound, with manageable debt levels.

B. Profitability Ratios

RatioValue (TTM/Recent)Benchmark/Implication
Return on Equity (ROE)$-0.19\%$Extremely low or negative. An ROE below $15\%$ (often cited as a good benchmark) or negative indicates poor efficiency in generating profit from shareholder equity.
Return on Assets (ROA)$1.23\%$Very low. Indicates poor efficiency in utilizing company assets to generate profit.
Gross Profit Margin$9.89\%$Low single-digit margins highlight the competitive nature of the packaging film industry and high input cost sensitivity.

The profitability ratios paint a concerning picture of operational efficiency and return on capital.

IV. Valuation Metrics

MetricValue (Recent)Implication
Price to Earnings Ratio (P/E)Negative (due to recent or TTM loss)Cannot be reliably calculated/interpreted when EPS is negative.
Price to Book Value (PBV)$0.20$ - $0.22$Significantly Undervalued relative to its book value (value below 1.0). A PBV this low often suggests the market has lost confidence in the company's future earnings power, despite having a substantial tangible book value.
Earnings Per Share (EPS)Negative (TTM) or very low positive (Recent Quarter)Highly volatile, making earnings-based valuation challenging.

The extremely low PBV suggests that, based on book value, the stock is deeply undervalued. However, the market's low valuation (discounting the book value by nearly $80\%$) is likely a direct response to the unstable and often negative EPS/Net Profit trend. This presents a classic "value trap" scenario, where a low PBV is not a guarantee of future upside if profitability issues persist.

V. Industry and Business Outlook

AKPI operates in the flexible packaging industry, which is generally supported by the growing consumer goods market in Indonesia.

  • Business: AKPI specializes in BOPP (Biaxially-Oriented Polypropylene) and PET (Polyethylene Terephthalate) films, crucial for food and non-food packaging.

  • Challenges: The sector is highly sensitive to the prices of raw materials (petrochemical derivatives, resin) and energy costs (gas/electricity). Fluctuations in these input costs, coupled with foreign exchange risks (as raw materials are often imported), directly squeeze the already thin margins.

  • Future Outlook: Management commentary often focuses on optimizing production and cost structures. Any significant rebound would depend on the stabilization of raw material prices and the company's ability to pass on cost increases to consumers, which is difficult in a competitive market.

VI. Conclusion and Investment Summary

The fundamental analysis of PT Argha Karya Prima Industry Tbk (AKPI) presents a mixed and generally cautious outlook.

StrengthWeaknessOpportunityThreat
Manageable Debt (DER < 1.0)Highly Volatile and Inconsistent Net Profit/EPSGrowth in the Indonesian FMCG/Consumer MarketFluctuations in Raw Material (Resin) & Energy Costs
Deeply Undervalued based on Book Value (PBV $\approx$ 0.2)Extremely Low Profitability Margins (NPM < 1%) and ROEPotential for Cost Optimization and Operational Efficiency ImprovementIntense Competition and inability to pass on cost increases

Investment Implication:

  1. Value Investor Caution: While the PBV of $\approx 0.2$ makes the stock look significantly cheap, the recurring losses, extremely low profitability ratios (ROE, ROA), and inconsistent EPS suggest the company is operating in a stressed financial environment. The stock may be an example of a value trap.

  2. Focus on Earnings Reversal: A substantial and sustained upward revision in the stock's fundamental valuation would only occur if AKPI can demonstrate a lasting return to high, consistent profitability (e.g., Net Profit Margin consistently above $3\%$ and ROE above $10\%$).

  3. Risk Profile: Given the high earnings volatility and low margins, this stock carries a high-risk profile for fundamental investors, suitable only for those comfortable with distressed assets and a very long-term horizon, contingent on a successful turnaround of the operating environment.

Disclaimer: This article is a fundamental analysis based on publicly available data and financial metrics as of the time of writing. It is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a certified financial professional before making any investment decisions.

About the Author


David Mulyana is the founder and editor of WorldReview1989, an independent publication dedicated to finance, investing, insurance, business, technology, and digital marketing.

He researches and writes in-depth articles that help readers understand complex financial topics through clear explanations, practical insights, and data-driven analysis. His editorial focus includes stock market investing, cryptocurrencies, banking, personal finance, business insurance, real estate, startup strategies, and emerging technology trends.

Every article published on WorldReview1989 is created with a commitment to accuracy, transparency, and reader value. Content is reviewed regularly to reflect the latest market developments, industry updates, and publicly available information from trusted sources.

Editorial Principles

- Accuracy before speed
- Independent and unbiased analysis
- Clear, easy-to-understand explanations
- Information supported by reputable public sources
- Regular updates to maintain content relevance

Areas of Expertise

- Personal Finance
- Investing & Stock Market
- Cryptocurrency & Blockchain
- Insurance
- Banking
- Real Estate
- Business & Entrepreneurship
- Digital Marketing
- Financial Technology (FinTech)

About WorldReview1989

WorldReview1989 provides educational content for readers seeking reliable information about finance, investment opportunities, insurance, business strategies, and technology. The website aims to simplify complex financial concepts and empower readers to make informed decisions.

Disclaimer: The information published on WorldReview1989 is for educational and informational purposes only. It should not be considered financial, legal, tax, or investment advice. Readers should consult qualified professionals before making financial decisions.

David Mulyana  writes about stocks, financial markets, investment strategies, insurance and emerging-market opportunities, with a focus on helping readers understand financial data and investment risks.

Investment Disclaimer

This article is for educational and informational purposes only and should not be considered personalized investment, tax or financial advice. Australian stocks can be volatile and involve currency, market, commodity, regulatory and geopolitical risks. Past performance does not guarantee future results. U.S. investors should conduct their own due diligence and consult a qualified financial or tax professional before investing.

Labels:

Comments

Post a Comment

Popular posts from this blog

Fundamental Analysis of Global Mediacom Tbk (BMTR)

By
Fundamental Analysis of Global Mediacom Tbk (BMTR) – Financial Performance & Investment Outlook Fundamental Analysis of Global Mediacom Tbk (BMTR) As the parent company of a sprawling media empire, PT Global Mediacom Tbk (BMTR) is a major player in Indonesia's media and entertainment landscape. A fundamental analysis of this company is more complex than analyzing a single-sector business. It requires a deep understanding of the media industry, the dynamics of its various subsidiaries, and a meticulous review of its consolidated financial statements.  Fundamental Analysis of Global Mediacom Tbk (BMTR) 1. Macro and Industry Context: The Media Landscape in Indonesia The performance of BMTR is heavily influenced by the broader media and advertising market in Indonesia. Advertising Spending: The health of the advertising industry is a key driver of revenue for media companies. An analysis would look at trends in corporate advertising budgets, especiall...
Post a Comment
Read more

Want to sell a house? Use this way to make it expensive

By
   The prolonged Covid-19 pandemic sent many people into a financial crisis. Businesses are deserted, turnover drags, savings are drained, and debts pile up. Inevitably, valuable assets are sold. One of them is  property , such as hotels, villas, apartments,  houses , to rents. All this is done to save  finances , including paying debts to get out of the famine. But take it easy, not everyone has fared that way. There are still people whose finances are adem ayem in the midst of a pandemic. I have a lot of money in savings. They're just holding back on spending. Once the time is right, they will shop or spend again, such as buying a house or property.  Well, after Lebaran can be the right moment to buy and sell a house. For those of you who want to sell a post-Lebaran house, here are tips to sell and the price is expensive: Home renovations Prospective buyers are reluctant to buy a home that has a lot of damage. Before it is sold, you will have to renov...
4 comments
Read more

Fundamental Analysis of Transsion Holdings Co., Ltd.

By
  Fundamental Analysis of Transsion Holdings Co., Ltd. (688036.SH) Transsion Holdings Co., Ltd. (SSE: 688036) is a major player in the global mobile phone industry, uniquely positioned as the "King of Africa" for its dominant market share in the continent. A comprehensive fundamental analysis of the company involves scrutinizing its business model, financial health, growth prospects, and competitive landscape. Fundamental Analysis of Transsion Holdings Co., Ltd. 1. Business Overview and Market Position Transsion Holdings, founded in 2006 in Hong Kong and headquartered in Shenzhen, China, primarily engages in the research and development, production, and sales of mobile intelligent terminal operating systems and mobile devices , along with providing mobile internet services. Core Business Model Transsion's strategy focuses almost exclusively on emerging markets , particularly Africa , as well as South Asia, Southeast Asia, the Middle East, and Latin America. Unlike...
Post a Comment
Read more

Top Undervalued Indonesian Stocks to Buy in 2026 (By Sector & Valuation)

By
Worldreview1989 -   Finding value in the stock market often means looking for companies that the market has temporarily overlooked despite their strong fundamentals. In the context of the Indonesia Stock Exchange (IDX) in 2025, several "blue-chip" and mid-cap stocks are trading at valuations significantly lower than their historical averages or intrinsic values. Here is a comprehensive look at the top undervalued stocks in Indonesia for 2025, categorized by sector and valuation metrics. Read Also :  Stages of the Steam Power Generation Process Here is a comprehensive look at the top undervalued stocks in Indonesia for 2025, categorized by sector and valuation metrics 1. The Banking Sector: Value in Stability Indonesian banks are known for their high profitability (ROE) and robust dividends. While some have reached all-time highs, a few remain attractively priced relative to their long-term growth potential. Bank Negara Indonesia (BBNI): Often trading at a lower P...
Post a Comment
Read more

Emergency Fund: Benefits, Ideal Amount, Tips for Accumulating It

By
 No one can be certain what the future will hold. Meanwhile, unexpected events, such as job loss or worsening health conditions, are very likely to occur. But don't be discouraged. Even though you can't predict the future, you can still reduce your risk of loss and maintain financial stability through an emergency fund. Emergency Fund: Benefits, Ideal Amount, Tips for Accumulating It What Is an Emergency Fund? Imagine having a secret savings account you can rely on in times of emergency and unforeseen circumstances. That's what an emergency fund is, folks! An emergency fund is a specific amount of money set aside to deal with unexpected situations that can cause a headache, such as job loss, sudden home repairs, or costly health issues. An emergency fund is your financial safety net to ensure you remain calm when life's storms hit. Benefits of an Emergency Fund Used in times of emergency, there are several benefits you can gain from an emergency fund, including: 1. ...
4 comments
Read more

MSCI Inclusion Stocks February 2026: Top Candidates & Investor Outlook

By
Worldreview1989 -   The Morgan Stanley Capital International (MSCI) Index rebalancing is one of the most anticipated events for Indonesian investors. As the February 2026 Quarterly Index Review approaches, market participants are closely watching several high-profile stocks that have the potential to "graduate" into the MSCI Global Standard Index. The official announcement is scheduled for February 10, 2026 , with the changes becoming effective at the market close on February 27, 2026 . Read Also :  Fundamental Analysis of Transsion Holdings Co., Ltd. (688036.SH) List of Stocks Potentially Included in the MSCI Index in February 2026 Why the MSCI Index Rebalancing Matters The MSCI Index serves as a primary benchmark for institutional investors and global fund managers. When a stock is included: Passive Inflow: Exchange-Traded Funds (ETFs) and mutual funds tracking the index are mandated to buy the stock. Enhanced Visibility: It puts the company on the radar of g...
Post a Comment
Read more

How to Open a 7-Eleven Franchise in the USA: Requirements, Costs, Fees, and Financial Analysis for 2026

By
How to Open a 7-Eleven Franchise in the USA : Requirements, Costs, Fees, and Financial Analysis for 2026 7-Eleven Franchise in the USA Worldreview1989 - Opening a convenience store franchise can be an attractive way to enter the U.S. retail market, but buying a 7-Eleven franchise is not a simple “pay the franchise fee and open a store” process . For prospective franchisees, the more important questions are: How much money do you actually need? What qualifications does 7-Eleven require? How much working capital should you have? How does the 7-Eleven royalty structure affect profitability? Can an SBA loan be used? What kind of return on investment is realistically possible? What should you check before signing the franchise agreement? This updated 2026 guide explains the process from an American franchise investor's perspective and includes a financial model designed to help potential franchisees evaluate the opportunity. Important: Franchise fees, investment requirements,...
Post a Comment
Read more