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Samudera – Sneak Peak at July Performance

Alas, after a blockbuster 1H performance, isn’t everyone just pumped to wait for the next upcoming financial announcement? What would be your expectations? A repeat of 1H2021? Under performance? Or a beat?



Before all that, let’s take a look at the world container index. As follows below, this is a snapshot as of 19 Aug 2021.


Source: Drewry


Pretty nice spike coming into Jun 2021.


How long is the wait to see updated performance?

It's not until next year February for Samudera Shipping Line’s FY 2021 results. Surprisingly, its not in October either, when Samudera Indonesia announces its 3Q results. We can actually have a glimpse of July performance... now!


Over the past few days, Samudera Indonesia has posted a material information disclosure on IDX ahead of the public expose event on 30 Aug 2021.


The material disclosure is scant on details but shows some pretty interesting figures.


Translations

Pendapatan – Revenues

Laba Usaha – Operating Profit

Laba Bersih (Pemilik Entitas Induk) – Net Profit (Owner of Parent Entity)

Kinerja – Performance

Dalam Juta – in million


Surprised? Let’s go back to take a look at what we know at the Samudera Indonesia and Samudera Shipping Lines entities for 1H 2021.


Source: Samudera Indonesia 1H 2021 Financial Statement


Source: Samudera Shipping Line 1H 2021 Financial Statement


This time round I would just be presenting the facts and letting the readers extrapolate what it means for Samudera Shipping Line. As prior mentioned, the exact allocation and structure of Samudera Shipping Line within Samudera Indoneisa can be up for different interpretations.


What do we know now?

  • As of Jun 2021, net profit attributable parent owners for Samudera Indonesia is USD23.6mil. As per presentation, it is USD32.9mil. The incremental performance in July alone is USD9.3mil.

  • The portion attributable to parent entity is USD23.6mil / USD37.3mil, circa 63.29%. So if we reverse back to full profit amount, it would be circa USD52.0m.

  • As of Jun 2021, net profit attributable to Owners of the Company for Samudera Shipping Line is USD36.7mil.

I would leave the rest for readers’ own interpretations. This is a very brief presentation slide and there can be a multitude of unknown impacts to the Singapore subsidiary that we might not know of. It seems unlikely that gains from vessels valuation adjustments would be included in this presentation. However, since its not a full reporting, we can’t know for sure.


Personally, I am pleasantly surprised by what I am seeing, indicative of very strong results. This basically throws the prior dividend assumptions I made out of the window, in a good way, and reinforces my view that Samudera Shipping Line is severely undervalued. Perhaps even more undervalued than what I had thought prior.



Disclaimer: All posts on The Squirrel's Drey are for informational and discussion purposes only. This is not a recommendation to buy or sell securities discussed. Please do your own due diligence before investing.

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