The cable sector stocks that I will discuss in this post are: PT KMI Wire & Cable Indonesia (KBLI).
I've realized and started trying KBLi since the price is 200's. However, it is only now that I have time to write and analyze KBLI's financial statements (because analyzing a company takes time and concentration).
Why am I discussing the cable sector? and why KBLI?
When Jokowi took office as President, Jokowi had a 35,000 MW electricity development project starting in 2019. Previously, the government had a 10,000 MW electricity project. This electrical project really needs aluminum conductor cable support. KBLI as a company in the cable sector with great prospects for splashing government projects.
Moreover, as infrastructure programs are increasingly being boosted, electricity projects will also have a very large positive impact. KBLI itself is a company in the cable sector that has very bright prospects, because apart from good financial reports, KBLI is one of the main suppliers of PLN cables.
KBLI's stock price movements are also still the most liquid compared to other cable sectors, such as SCCO, VOKS, JECC, KBLM, IKBI. If you pay attention, there are no stocks other than KBLI as liquid as KBLI. KBLI stock trend also looks the most convincing.
What about the financial statements? Take a look at KBLI's financial statements below (I used KBLI's third quarter 2016 vs 2015 analysis).
KBLI looks very promising because KBLI's net profit has increased almost 4x in one year, from 65 billion to 228 billion. KBLI's net sales also increased from 1.8 trillion to 1.93 trillion. In addition, KBLI management also looks good. This can be seen from the cost of goods sold which decreased in the third quarter.
Okay, now you know the prospect of KBLI, both in terms of financial statements and KBLI's projects in the future (KBLI is very promising because it is one of the main suppliers of PLN cables). So, what about KBLI's competitors?
Well, judging from the actual prospect of KBLI's competitor, namely PT Supreme Cable Manufacturing & Commerce (SCCO), SCCO actually has a higher turnover and profit than KBLI. SCCO's turnover as well as SCCO's net profit experienced a significant increase, the same as KBLI.
However, between the two stocks, I still choose KBLI as a stock investment vehicle, because KBLI has a big relationship with PLN. On the one hand, KBLI's shares are much more liquid. Another reason is that KBLI's stock is still in the 300's (as of this writing). Meanwhile, SCCO's share price is now at 7,500.
Of course, KBLI's valuation and liquidity are much more attractive. The movement of KBLI's shares also seems to be starting to move up steadily, and KBLI seems to be starting to be liquid. However, the increase in KBLI's shares does not mean that KBLI will not correct at all. Short-term fluctuations will still occur.
KBLI risk
In stock investment, apart from gains, there are risks. KBLI is indeed a prospect, but KBLI's income is also easily affected by volatility. This is because KBLI's net profit is very vulnerable to the exchange rate. You need to know, currently a lot of copper metal is imported from abroad.
Look again at the financial statements of KBLI above. It can be seen that the KBLI 'Foreign Exchange Rate Gain' post from 2015 to 2016 decreased very drastically. This is due to the influence of currency as I mentioned above. Also read: Positive and Negative Impacts of Changes in Rupiah Exchange Rates.
Seeing the prospect of infrastructure development that is getting more intense and government projects related to the cable sector, I recommend this KBLI stock to be an option for you.
