(image sourced from bigstock)
JAKARTA – Looking to re-vamp your stock portfolio for 2016? Take a look at Indonesia’s 10 most appealing listed companies based on their Price to Earnings (PE) ratio. The following companies have PE ratios under 10.
1. PT United Tractors Tbk (UNTR) – United Tractors remains one of the best performers under Astra Group. With several major business lines including coal mining, coal contracting, heavy equipment sales and construction, it is rumored they plan to enter the cement industry. P/E ratio 8.26 ; trading at Rp16,950
2. PT Adaro Energy Tbk (ADRO) – Adaro Energy Group is pushing back its coal production and has just entered an agreement with gasoline supply giant Pertamina. P/E ratio 5.2 ; trading at Rp525
3. PT Garuda Indonesia (Persero) Tbk (GIAA) – Indonesia’s signature airline has recently increased the size of their fleet. Constant improvements to airline supporting infrastructure is expected to help Garuda as they expand their service network. P/E ratio 8.13 ; trading at Rp311
4. PT Sri Rejeki Isman Tbk (SRIL) – This company operates in the textile industry with strong sales to the Asian and domestic markets. If you look at Prudential Life Assurance’s portfolio, you will notice that this stock was their only gainer. P/E ratio 9.4 ; trading at Rp392
5. PT Indah Kiat Pulp and Paper Tbk (INKP) - Operating under Sinar Mas Group, the company faced heavy criticisms after recent forest fires however they still remain one of the most dominant players in exporting paper products. P/E ratio 1.48 ; trading at Rp960
6. PT Lippo Cikarang Tbk (LPCK) – Operating under the Lippo Group umbrella, this real estate company recorded 10% yoy growth in revenue, however forex loss hindered the company from recording a strong net profit. P/E Ratio 5.15 ; trading at Rp7,250
7. PT Soechi Lines Tbk (SOCI) – Soechi engages in the shipping of liquid cargo and distributes oil and gas through water routes. They also conduct business in ship building and ship repair. P/E Ratio 5.36 ; trading at Rp464
8. PT Ciputra Property Tbk (CTRP) – Ciputra Property is one of Indonesia’s largest mixed-use property developers. They have an ongoing superblock project in the capital’s center named Ciputra World. P/E ratio 7.35 ; trading at Rp414
9. PT Elnusa Tbk (ELSA) – Integrated oil and gas company, Elnusa has been improving their profit margin through rough economic circumstances. Elnusa’s management boasts their upcoming US$86 million seismic project will boost the company’s margins even further. P/E ratio 6.14 ; trading at Rp253
10. PT Metropolitan Land Tbk (MTLA) – Metropolitan Land is a property developer of malls, landed houses, apartments and mixed use properties. The company readies to launch several projects in 2016 including a mall in Bogor, West Java. P/E ratio 7.7 ; trading at Rp215
*A low P/E ratio may indicate that a company may be undervalued or perhaps is doing well compared to previous years.
*P/E ratio and trading price was gathered on December 30, 2015.