Analysis of Company Stock and Business Portfolio ; Adhi Karya, Tbk.

From this report we can see the fluctuation of stock price of Adhi Karya, Tbk from January 2,2011 till October 30, 2011. The data show us the average stock return is 0,00167719 which means that at least the investors who hold the stock of  Adhi Karya will gain 0,001678 or 0,1678% profit per day. While for the standard deviation of stock market is 0,030381418 and it means that the different between the expected return and actual return is about 3,039%. For the market return, the average value is 0,000985588 and it means that the investors who are investing to this company and hoping to get some profits from the market return can get 0,098% profit from the market price.

For the standard deviation of stock market is 0,030381418 and it means that the different between the expected return and actual return is about 3,039%. The standard deviation from market return is 0,013931372 or 1,3932%. It means that the difference between investors’ expected return and actual return from the market, in this case IHSG, is around 1%.

The beta is 0,267191567. Beta show us when there is 1% increase in market return, the stock price will increase by 0.2672%.

Adhi Karya,Tbk has three business which are construction, EPC, and investation. Construction is a part of star on BCG matrix because they keep builds the construction and also become the market leader with 7% of market share. The existence of EPC is the part of cash cow because the core business of Adhi Karya is already succes and they use the fund to make another business. Investment is a new business of Adhi Karya, Tbk and it is include in question mark on BCG matrix or as introduction in product life cycle. For the dog part, there is no such product that we can put in this part because Adhi Karya, Tbk is still a growing company and it is promising. The products owned by Adhi Karya still can generate profits to the company. 

Analysis of Company Stock and Business Portfolio

Company Profile

Adhi Karya,Tbk.

Adhi karya,Tbk is a public company and the business is bout construction. It established on march 11th, 1960 and the status changed to persero on June 1st, 1974. Before 2003, the stock of Adhi karya,Tbk is 100% owned by government of Indonesia, but after 2003, government did an IPO (Initial Public Offering) of Adhi Karya and released 49% of the stock. In turn, Adhi Karya is listed on Indonesian Stock Exchange Market and also become the first construction company that listed on Indonesian Stock Exchange Market.

Adhi Karya,Tbk classified the construction business into two big business which are infrastructure project and building project. For the infrastructure projects it includes the projects of road, bridge, irrigation, and others. While for the building project, it includes the hotels and office building, schools and hospital, commercial buildings, residential, industrial and manufacturing, mechanical and electrical work on buildings and industrial, electrical transmission and substations, building automation, power plants, air conditioning and sound systems, radio, telecommunications, and instrumentation and piping. Adhi Karya also expands the business abroad in Oman and Qatar.

The core business of Adhi Karya is on construction but Adhi Karya has and expands business that still related to the core business, which is called EPC. EPC focus on the making of electricity generation and gas generation. EPC also take a rule as a contractor service provider, also making design, plan, also procurement of construction.

Investment is also done by this company because it gives high value creation. Like what I have said before, the core business of Adhi Karya is on construction so the investment is also done on construction part such as highway, electricity generator, and property. Doing this investment, Adhi Karya hopes that soon they can create and built their own EPC and construction.

Adhi Karya,Tbk has five subsidiary companies which are :

1.      Adhi Realty (property development)

                  Adhi Realty works on property business and has created some buildings like office, commercial buildings, and residence. The stock is 98% owned by Adhi Karya and 2% owned by employee cooperation of Adhi Realty.

2.      Adhi Oman LLC (construction service)

   

3.      PT. Duri Indah raya

4.      PT. Adhicon Persada (construction)

   

5.      Adhi Multipower Pte. Ltd (general trading)