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Hexindo (HEXA) Heavy Equipment Sales Target Drops to 2,375 Units

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Hexindo (HEXA) Heavy Equipment Sales Target Drops to 2,375 Units

Bisnis.com, JAKARTA - Heavy equipment issuer, PT Hexindo Adiperkasa Tbk.(HEXA) is targeting sales of excavator type heavy equipment over 6 tons of 2,375 units for the 2023 financial year. This target is actually lower than HEXA's heavy equipment sales achievement for the 2022 period of 3,447 units.

HEXA Sales Director Dwi Swasono said the reason the company lowered its heavy equipment sales target was because the weakening trend in coal prices had an impact on HEXA's sales.

"The growth trend in 2023, from the coal price sector which tends to still be below, of course this will have an impact on our sales," said Dwi in a public presentation, Tuesday, (26/9/2023).

Nevertheless, the company is still optimistic that coal prices will recover, along with conditions of political stability ahead of the election which are expected to be quite good, so that this will encourage sales of HEXA heavy equipment.

For information, HEXA reported that sales and rentals of heavy equipment reached 3,447 units at the end of the 2022 financial year, or an increase of 28.8 percent from 2,676 units in 2021.

Meanwhile, sales of heavy equipment as of June 30 2023 were 607 units, of which 572 were excavators and 61 were mini excavators.

Total sales until June 2023 amounted to US$143.83 million or around IDR 2.22 trillion (jisdor exchange rate IDR 15,464 per US dollar).Meanwhile, net profit was US$14.18 million or Rp. 219.29 billion.

In terms of financial projections, the company is still setting a conservative target for net profit which is projected to be the same as the 2022 financial year, but is optimistic that revenue can still grow.

Please note, HEXA uses the fiscal year period April 2023-March 2024 because it follows its parent company, the Japanese Hitachi Group.

HEXA Finance Director Yoshendri explained that for the 2023 financial projections, it is predicted that by the end of March 2024, total revenue will be US$651.5 million, or up from US$630.4 million in the 2022 financial year.

"Meanwhile, the projected net profit for 2023 is US$51 million or more or less the same as the previous year," concluded Yoshendri.

As previously reported, based on the results of the Annual General Meeting of Shareholders (AGMS) on Tuesday (26/9/2023), HEXA decided to distribute dividends for the 2022 financial year of US$41.29 million or around Rp. 638.60 billion to shareholders.

Meanwhile, the dividend payout ratio (DPR) is 80 percent of HEXA's net profit for the 2022 financial year of US$51.62 million or around IDR 798.26 billion.If you calculate the number of shares outstanding as 840 million shares, then the dividend per share that shareholders will receive is around IDR 760.24 per share.

Apart from that, the HEXA GMS also approved the addition of 7 new business activities, by investing US$ 52.16 million or around Rp. 802.5 billion, which will be carried out over 5 years for the purchase of Hitachi Excavator and BELL Articulated Dump Truck assets.

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Hexindo (HEXA) Heavy Equipment Sales Target Drops to 2,375 Units

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