Back to announcement
20240506_SMMF_Laporan Hasil Pemeringkatan_31634743_lamp2.pdf
Other Text extracted SMMFSource file signed link, expires in 15 minutes
Extracted text 2
Page 1 OCR 0.910
M KRI RATING RATIONALE PT Sinar Mas Multifinance (SMMF) Company Rating #rAtIStable Rated Issue Obligasi Berkelanjutan III Sinar Mas Multifinance irAt Obligasi Berkelanjutan II Sinar Mas Multifinance irAt Rating Period May 2, 2024 — May 2, 2025 Rating History April, 2023 irAtIStable November, 2022 irAt/Stable May, 2022 #AtIStable June, 2021 #rAtI/Stable April, 2020 irAtIStable Kredit Rating Indonesia has affirmed a Company Rating of “,At' for PT Sinar Mas Multifinance with “Stable' Outlook Kredit Rating Indonesia (KRI) has affirmmed a company rating of ',At' for PT Sinar Mas Multifinance (SMMF or the Company) with a “Stable' outlook. Concurrentiy, KRI has affirmed an ",A#' rating for both the Obligasi Berkelanjutan II Sinar Mas Multifinance and Obligasi Berkelanjutan III Sinar Mas Multifinance, each amounting to IDR2.00 trillion. These ratings reflect the sustained support from PT Sinar Mas Multiartha Tbk (SMMA), the parent company. Factors such as the company's relatively small market presence within the industry, adeguate capitalization, and thin profitability have also been considered in the assigned ratings. Founded in 1985, SMMF operates as a subsidiary of PT Sinar Mas Multiartha Tbk. As of 2023, SMMA reported assets totaling IDR113.97 trillion. Besides SMMF, SMMA also owns other significant subsidiaries including PT Asuransi Sinar Mas and PT Bank Sinarmas Tbk. SMMF specializes in consumer financing (used car), factoring, Hajj financing, and leasing, with total assets of IDR5.79 trillion as of the end of December 2023, a decrease from IDR6.65 trillion in 2022. This represents only 5.087b of the total consolidated assets of its parent company, SMMA. The parent company's support has been evident through increases in issued and paid-up capital stock—from IDR1.00 trillion in 2017 to IDR1.15 trillion, and then to IDR1.19 trillion in 2018—along with providing corporate guarantees. SMMF has long been established in the used car financing sector, yet it holds a small market share within the industry. As of the end of December 2023, SMMF's total financing receivables stood at IDR3.15 trillion, down from IDR3.75 trillion in 2022 (FY21: IDR3.80 trillion, FY20: IDR5.34 trillion). This represents approximately 0.72”4 of the market share. The adoption of selective booking and the strengthening of risk acceptance criteria for borrowers are key factors that have restrained the growth of SMMF's financing portfolio. At the end of 2023, SMMF operated its business through 110 branch offices. In the coming years, the company does not plan to expand its branch network to support business development. The company's consumer financing portfolio in 2023 comprised used cars (95.024) and new cars (4.98/4). Regarding consumer financing, SMMF has ceased financing used motorcycles and has shifted its focus to financing used cars with younger vehicle ages. SMMF's capitalization is considered adeguate, with the eguity to total assets ratio increasing slightly to 20.93 at the end of December 2023, up from 19.93/b in 2022, although slightly lower than the 21.946 observed in 2021. The Debt to Eguity (DER) ratio was 3.66x at the end of December 2023, decreasing from 3.93x in 2022 and 4.42x in 2021, yet still higher than the industry average of 2.26x for the same period. Despite this, the gearing level remains well below the OJK's regulatory maximum of 10x. Additionally, the company's non-performing financing (NPF) rate was stable at 3.367 at the end of 2023, a slight improvement from 3.64” the previous year. Compared to its peers, SMMF's profitability remains relatively low. The company's net profit margin increased to 5.179 in December 2023, up from 3.81”b in 2022 and significantly above the 1.46Ys recorded in 2021. However, the Return on Assets (ROA) was considerably below the industry PT Sinar Mas Multifinance 1
Page 2 OCR 0.909
G RATING RATIONALE KRI average, recorded at -5.03b for December 2023, a decline from -3.46b in 2022 and a shift from the positive 1.70Y6 in 2021. This decrease is primarily due to a reduction in the fair value of the company's investments. SMMF projects that future losses from investment will not occur and will not impact on financial performance, following regulatory directives for the company to focus solely on financing activities. SMMF Financial Results Highlights (Consolidated) Dec 2023 Dec 2022 Dec 2021 Dec 2020 As ofiFor.ihe Yaar endad (Unauditea) | (Audited) | (Auditea) | (Audited) Total Assets (IDR, Bn) 5,793.89 6,652.63 7,122.85 7,997.85 Total Debt (IDR, Bn) 4,441.41 5,204.25 5,303.33 6,329.89 Total Eguity (IDR, Bn) 1,212.83 1,325.89 1,562.68 1,431.07 Total Revenue (IDR, Bn) 1,125.32 1,195.46 2,285.58 1,347.04 Net Income (IDR, Bn) 313.21 -238.63 128.73 -524.36 Debt to Eguity (x) 3.66 3.93 3.39 4.42 Eguity/Assets (x) 20.93 19.93 21.94 17.89 Net Interest Margin (0) 5A7 3.81 1.46 5.63 Cost/Income (Yo) 73.66 67.41 28.66 174.46 Return On Asset (V2) -3.46 1.70 613 Return On Eguity (86) 16.52 8.60 -30.27 NPF (90) 3.64 1.86 2.36 Analysts : Furgon Abrory Samara (furgon.samara@kreditratingindonesia.com) Cut Nabila Saraziva (cut.nabila@kreditratingindonesia.com) DISCLAIMER PT Kredit Rating Indonesia (KRI) does not represent or wartant or guarantee the accuracy, completeness, timeliness or availability of the contents of this report or publication. KRI does not perform an audit and does not undertake due diligence or independent verification of any information used as the basis of and presented in this report or publication. Although the information upon which KRI rating report are based, and any other contents provide in this rating report is obtained by KRI from sources which KRI believers to be reliable. KRI will be held harmless against any responsibility arising from its use, its partial use, or its lack of use, in combination with other products or used solely, nor can it be held responsible for the result of its use or lack of its use in any investment or other kind of financial decision making on which this report or publication is based. The issuance of a solicited or unsolicited rating report does not supply financial, legal, tax or investment consultancy. The rating report is not an opinion as to the value of securties, therefore KRI is not responsible for any credit, Ioan or investment decision, damages or other losses resulting from the reliance upon or use of this In no event shall KRI be held liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or conseguential damages, costs, expenses, legal fees, or losses including but not limited to lost profits and opportunity costs in connection with any use of the contents of this rating report or publication. Credit analyses, including ratings, and statements in this report or publication are statements Of opinion as Of the date they are expressed and not statements of fact or recommendations to purchase, hold or sell any securities or to make any investment decision. Therefore, this report may not reflect any event or circumstances which occur after the date of this report. KRI also assumes no obligation to update the content following publication in any form. KRI does not act as fiduciary or an investment advisor. KRI keeps the activities of its analytical units separate from its business units to preserve independence and objectivity of ts analytical process and products. As a result, certain units of KRI may have information that is not available to other units. KRI has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. KRI may receive compensation for its ratings and other analytical work, normally from issuers of securities. KRI reserves the right to disseminate its opinions and analyses. KRI's public ratings and analyses are made available on its website, http//www.kreditratingindonesia.com (free of charge) and through other subscription based services, and may be distributed through other means, including via KRI publications and third party redistributors. Information in KRI's website and its use fall under the restrictions and disclaimer stated above. No part of KRI'S website, the content of this report, may be reproduced or transmitted by any means, electronic or non-electronic whether in full or in part, will be subjected to written approval from KRI. PT Sinar Mas Multifinance 2
Names mentioned 5 people and organisations named in the text · linked when the evidence is strong
unresolved
org
PT Asuransi Sinar Mas
p.1
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.