In June 2017, Indonesian water company Moya Holdings Asia acquired a major water player, and the latter's contribution has made a big impact this year.

paul2.18Flowing next to Moya Tangerang water treatment plant, the Cisadane River is controlled by a dam. The treatment plant supplies clean water to Jakarta city, including 90% of the water reaching its international airport.
NextInsight file photo
.
Moya's 1H2018 revenue increased by S$60.3 million to S$93.6 million, mainly attributable to the acquired Acuatico Group.

Acuatico's contribution of S$73.0 million represented 78.0% of the total revenue in 1H2018 of Moya, which is listed on the Singapore Exchange.


The groups' net profit jumped 542% to S$16.0 million in 1H2018.

On an annualised basis of S$32 million, Moya 2018 earnings translates into a PE ratio of about 12X its current market cap of S$387 million (stock price: 9.2 c). 

Moya is also the only listed water business from all of Indonesia, the 4th most populous country in the world.



briefing8.18CFO Darmasen Anwar presenting at a 2Q results briefing last Friday. Photo by Ngo Yit SungNotably, operating cashflow was about S$25 million in 1H2018.

(The reported cashflow was S$9.4 million but that's after deducting S$14.7 million for construction costs relating to its build-operate-transfer water projects.) 

Moya's gross profit margin points to a business with robust strength: Margin improved from 36.0% in 1H2017 to 45.1% in 1H2018.


Ebitda margin too has been on an uptrend, rising from 35.4% in 2Q17 to 46.5% in 2Q18. (see table).

S$ ‘m

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

EBITDA

0.17

4.32

15.91

20.92

16.52

17.92

EBITDA margin

7.4%

35.4%

42.9%

52.0%

46.2%

46.5%

• Full consolidation of Acuatico took place from 3Q17.
• There is seasonality in the water business, with 4Q being the best. 


DarmasenAnwar8.18Moya CFO Darmasen Anwar.
Photo by Leong Chan Teik
Moya, now the largest private water player in Indonesia with a production capacity of 14,000 litres per second (lps), is set to increase its sales volume.

It is investing a total of S$110 million in its PT Moya Tangerang project, with expansion in the following areas: 

♦ Production capacity at this build-operate-transfer project will go up from 950 lps to 2,000 lps by 2024.

♦ Installed pipe network from the water treatment plant to end-users will go up from an initial target of 631 km to 1,200 km.

At its PT Moya Bekasi Jaya, also a build-operate-transfer project, a pipeline network from the plant to end-users is being extended, which will allow for more water sales. 

Commenting on the Group’s results, managing director Irwan A. Dinata said: “Indonesia’s water sector presents huge growth potential as the government aims to achieve universal access to water supply and sanitation. The Group has benefited from the accretive acquisition of the Acuatico Group and we believe that there are more opportunities in the sector awaiting us.”

If there is one negative, it is the finance cost that Moya bears for its S$354.4 million borrowings as at end-June 2018.

Finance cost increased by S$17.2 million, from S$1.8 million in 1H2017 to S$19.0 million in 1H2018, mainly due to interest expenses of a bank loan in connection with the Acuatico acquisition.

For on-the-ground insights, read: 


Share Prices

Counter NameLastChange
AEM Holdings0.805-0.025
Alliance Mineral0.250-0.015
AusGroup0.037-0.002
Avi-Tech Electronics0.330-0.005
Best World Int.1.410-0.010
China Sunsine0.985-0.015
DISA Limited0.005-
Dutech Holdings0.245-0.005
Federal Int. (2000)0.240-
Food Empire0.535-0.010
Geo Energy0.225-0.010
Golden Energy0.255-
GSS Energy0.112-0.004
Heeton Holdings0.5200.005
ISOTeam0.245-
KSH Holdings0.560-
Lian Beng Group0.480-0.005
Miyoshi0.049-0.006
Nordic Group0.450-
Oxley Holdings0.310-
REX International0.106-0.001
Riverstone1.200-
Roxy-Pacific0.390-
Serial System0.082-0.003
Sing Holdings0.390-
Sino Grandness0.197-0.001
Straco Corp.0.715-0.005
Sunningdale Tech1.360-0.020
Sunpower Group0.535-0.010
The Trendlines0.108-
Tiong Seng0.300-
Trek 2000 Int.0.114-
Uni-Asia Group1.2700.020
XMH Holdings0.200-
Yangzijiang Shipbldg1.240-0.030

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1127 guests and no members online