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Sarana Armada prepares a capex of Rp 1.2 trillion, 80% comes from loans

08 January 2019 07:06 AM  Company: PT. Adi Sarana Armada Tbk[ASSA]
Rp. 800  +45 (5.96%)

JAKARTA. PT Adi Sarana Armada Tbk (ASSA), a car rental company, has prepared a number of expansions and allocated a capital expenditure (capex) of Rp 1 trillion - Rp 1.2 trillion this year. 80% of the funds are from loans and the rest is from the company's internal cash.

Director of ASSA, Hindra Tanujaya revealed that the capital expenditure will be used to support business expansion, in the form of adding new fleets, expanding the auction and logistics services business (courier service) which includes motorcycle auction and rental of logistics vehicles, including large-sized trucks.

"The capex source composition is 80% from bank loans and 20% from internal cash," he told on Monday (7/1).

In addition, Hindra also stated that in 2019, ASSA also plans to add a new fleet of 5,000 to 5,500 units, the same as in 2018.

On the other hand, ASSA plans to boost the auction and logistics services segment. "At present, its contribution to ASSA's income, if combined, has reached 60%. The rest is still from the car rental and sales segment," he added.

This year, ASSA targets a revenue increase of 15%. While in terms of net profit, Hindra was reluctant to disclose its projections. "The increase in net profit is not much because we have new investment and new business operations," he added. (AM/AR)

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PT. Adi Sarana Armada Tbk [ASSA]   Rp. 800   +45 (5.96%)