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)