SBMA optimistic on achieving growth projection for 2025

PT Surya Biru Murni Acetylene Tbk (SBMA) is optimistic about achieving the company's growth projection in 2025. The management target is supported by a solid increase in plant utility capacity based on established parameters to face challenges and take advantage of opportunities.

SBMA President Director Rini Dwiyanti stated that the company's leading products, such as medical gas, special gas products, and services such as leak tests, hydrotests, and vacuum tests will support the growth of the company's fundamental performance.

"We see great potential in this service sector to maintain and improve customer service and the expertise of the trusted technical team," said Rini in her statement on Feb. 11, 2025.

This year, SBMA focuses its investment on three main aspects, namely market development, product diversification, and strengthening human resources (HR). The strategic areas that are the company's priority are South and Central Kalimantan, with the aim of supporting the government's plan to develop the oil and gas, mining, and medical sectors, which have great potential to boost SBMA's business growth.

PT FAC Sekuritas Indonesia Head of Research Wisnu Prambudi said that SBMA has recorded consistent asset growth of 6.7 percent year-on-year (yoy) on average since its IPO on Sep. 8, 2021, until the third quarter (Q3) of 2024. SBMA's equity was boosted by an average growth was 8.33 percent yoy, while the company's revenue and net profit jumped 21 percent yoy nad 22 percent yoy, respectively.

The book value of SBMA's equity is at Rp241 per share, while the market value is at Rp118 per share. Thus, the price of SBMA shares is relatively cheap. SBMA shares, according to Wisnu, have the potential to strengthen by 104 percent if they return to their fair price of Rp241 per share. Even if the price is discounted 30 percent from the book value to Rp169 per share, the potential for a price increase is still quite attractive at 43 percent.

"In addition, the DER (debt to equity ratio) being at 0.19 percent means that [SBMA's] debt to equity is rather small. SBMA's return on assets or ROA in the last 3 years has also shown a consistent increase," Wisnu divulged.

Similarly, Stocknow.id founder Hendra Wardana said that SBMA booked its net profit soaring by 106.3 percent yoy to Rp9.7 billion in the third quarter (Q3) of 2024. SBMA's main advantage, he noted, is its strategic position in Kalimantan, especially with the presence of the Nusantara Capital City (IKN) project and the growth of the smelter industry in the region.

SBMA's focus on developing the local market is an advantage in itself, because strong domestic demand continues to support SBMA's performance even while world gas prices are rising. As a producer of industrial gases such as acetylene, oxygen, nitrogen, and argon, SBMA relies on raw materials and energy in its production.

If world gas prices, especially those on liquefied petroleum gas (LPG), liquefied natural gas (LNG), or chemicals such as calcium carbide for acetylene increase, the company's production costs could rise and reduce its profit margins.

"However, the prospect of industrial growth in Kalimantan remains a positive catalyst that can maintain SBMA's business stability in the future," said Hendra.