Medan – The entrance of PT. Mahkota Group Tbk (MGRO), a palm oil issuer from North Sumatra, into the Financial Times Stock Exchange (FTSE) categorized in micro capitalization or micro caps in the period of December 2018 represents international institutional recognition of fundamental and prospective business prospects.
MGRO is included in the FTSE micro caps on the grounds that it has just held an initial public offering (IPO) this year. The company's entry into FTSE also increased investor confidence in spurring transactions.
"This is a benefit for investors. With the FTSE list, as well as MSCI, the assumption will be chosen by foreign investors so that they can be used as an option to conduct transactions," said Reza Priyambada from PT Binaartha Sekuritas on Wednesday (28 / 11/2018).
MGRO President Director Usli Sarsi is grateful for investors’ support, so the company can enter the FTSE micro caps. "We will maintain investor confidence by further improving our performance." Usli said.
The company's performance has consistently grown on the back of increasing economic scale, along with rising production volumes and cost efficiency. As of September 2018, MGRO posted revenue of Rp 1.5 trillion with a net profit of Rp 45 billion, improving compared to the loss in the same period of 2017 of Rp 17 billion.
As for business expansion, MGRO is also building a refinery plant. At present the company is preparing a foundation for building and machine structures. "It is targeted to be commissioned in July 2019," he added.
At the end of December 2018, all construction of the refinery foundation will be completed. It is estimated that the development progress in late December will reach 25%. In January 2019, the building structure and machine installation project will begin. (Adv)
Source: Bisnis Indonesia Daily Thursday, November 29 2018