Zyrexindo Mandiri Buana

Bloomberg: ZYRX.IJ | Reuters: ZYRX.JK

Manufacture Sector
20 April 2022 JCI Index: 7,199

Not Rated Local Pride

Target Price (IDR) - Supported by its eight production lines and laptop production capacity of up to
Potential Upside (%) - 3,700 units per day, ZYRX was able to increase its computer and laptop production
volume by +65% yoy in FY21. The majority of the company's sales (90%) were made
Price Comparison
to the government (B2G) to support the SiswaTop program. ZYRX’s products were
Cons. Target Price (IDR) -
chosen for a variety of reasons, including their high Domestic Component Level
SSI vs. Cons. (%) -
(>40), high durability, and affordable prices.

Stock Information
Production capacity of up to 430,000 units/year. PT Zyrexindo Mandiri Buana Tbk
535 (ZYRX) is a computer assembly company that has been operating since 1996. ZYRX is
Last Price (IDR)
1,333
actively producing computers, laptops, and IoT products under the ZYREX brand, with
Shares Issued (Mn)
the support of its eight production lines and laptop production capacity of 3,700
Market Cap. (IDR Bn) 707
units/day or 430,000 units/year. ZYRX’s main advantage over its competitors is its
52-Weeks High/Low (IDR) 900/442
ability to adapt its products to customer needs, both in terms of price, quality, and
3M Avg. Daily Value (IDR Bn) 3.7
durability.
Free Float (%) 25.0
Supporting SiswaTop program. Most of the products sold by ZYRX were mobile
Shareholder Structure:
devices (laptops) (FY21: 170,610 units; 87.5% of the company's FY21 revenue). The
Timothy Siddik (%) 56.25
majority of ZYRX’s laptop sales (90%) were made to the government (B2G) to support
Colleen Siddik (%) 18.75
the Ministry of Education, Culture, Research, and Technology’s SiswaTop program.
Public (%) 25.00
ZYRX’s laptops were chosen for the program mainly due to their high TKDN (>40%) and
affordable prices (IDR 4-5 million/laptop). In FY22F, the company targets to increase
Stock Performance its mobile device sales by +47% yoy, with the government as its main customer. ZYRX
(%) YTD 1M 3M 12M also expects that its involvement in the SiswaTop program will help introduce its
Absolute 1.0 (3.6) 3.9 (30.7)
products to a wider market, which will benefit its market share. For information, in
JCI Return 9.2 3.4 8.5 19.1 FY21, ZYRX's market share only reached 4% of Indonesia’s laptop industry, up from 1%
Relative (8.3) (7.0) (4.6) (49.8) in FY20.
Net profit growth of +92% yoy in FY21. ZYRX reported sales growth of +191% yoy in
Stock Price & Volumes, 12M
FY21, supported by the +65% yoy increase in its production volume. The increase in
sales was driven, among others, by the procurement of laptops for the SiswaTop
program and the collaboration between ZYRX and Pegatron to secure the supply of
raw materials. ZYRX’s COGS rose +237.7% yoy in FY21, mainly due to higher
commodity and raw material prices. Despite this, ZYRX was still able to record gross
profit growth of up to +79% yoy, with a GPM of 18.1%. Its EBITDA went up +85% yoy
to IDR 96.2 billion, and its net profit rose +92% yoy to IDR 69.7 billion.

Company Background At closing price IDR 535 per share

Established in 1996, PT Zyrexindo Mandiri Buana Tbk Y/E Dec 17A 18A 19A 20A 21A
(ZYRX) engages in the assembly and sales of Revenue (IDR Mn) 61,160 73,654 128,633 223,464 650,832
computers, laptops, and IoT under the ZYREX brand. EBITDA (IDR Mn) (2,349) 2,259 17,958 51,947 69,202
Based in DKI Jakarta, the company has eight EV/EBITDA (x) (130.5) 129.9 15.8 8.2 7.4
production lines with a production capacity of 430,000 Net Profit (IDR Mn) (6,493) (4,764) 8,238 36,377 69,751
units/year. EPS (IDR) (13.3) (9.7) 16.8 48.8 55.7
EPS Growth (%) n.a. (26.6) n.a. 190.2 14.1
P/E Ratio (x) (40.4) (55.0) 31.8 11.0 9.6
Yosua Zisokhi BVPS (IDR) 1.5 (5.8) 11.2 69.6 159.6
+62 21 2854 8387 P/BV Ratio (x) 365.7 (5.8) 47.7 7.7 3.4
yosua.zisokhi@samuel.co.id DPS (IDR) - - - - -
Benjamin Martin Dividend Yield (%) - - - - -
ROAE (%) - - 154.6 31.7 13.8
riset@samuel.co.id
ROAA (%) - (2.2) 3.0 8.5 8.6
Interest Coverage (x) (0.6) 0.3 3.8 22.3 21.1
Net Gearing (%) 62.0 (11.0) 3.9 0.5 0.2

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Zyrexindo Mandiri Buana
Bloomberg: ZYRX.IJ | Reuters: ZYRX.JK
Manufacture Sector
20 April 2022 JCI Index: 7,199

Figure: ZYRX’s Profitability (IDR Bn) Figure: Indonesia’s Laptop Market Share (FY21)
700
600 6% 4%
Zyrex
500 14%
400 Asus
29%
300 Acer
200 Lenovo
100 HP
29%
-
DELL
FY19 FY20 FY21 18%
Revenue Gross Profit Operational Profit Net Profit

Source: Company, SSI Research Source: Company’s presentation

Figure: ZYRX’s revenue contribution (FY21) Figure: ZYRX’s mobile devices sales contribution (FY21)

0.7% 2%
11.7% 8%

Mobile devices B2G

IT Products B2B
IoT Accessories B2C

87.5% 90%

Source: Company, SSI Research Source: Company, SSI Research

Figure: ZYRX’s laptop production line Figure: ZYRX’s testing chamber

Source: Company’s documentation Source: Company’s documentation

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Zyrexindo Mandiri Buana
Bloomberg: ZYRX.IJ | Reuters: ZYRX.JK
Manufacture Sector
20 April 2022 JCI Index: 7,199

Key Financial Figures

Profit and Loss Cash Flow
Y/E Dec (IDR Mn) 17A 18A 19A 20A 21A Y/E Dec (IDR Mn) 17A 18A 19A 20A 21A
Revenue 61,160 73,654 128,633 223,464 650,832 Net Profit (6,493) (4,764) 8,238 36,377 69,751
Cost of Revenue (49,516) (60,616) (98,504) (157,924) (533,263) D&A 471 702 1,231 1,371 1,858
Gross Profit 11,644 13,038 30,129 65,540 117,569 Changes in Working Capital (471) 17,875 3,353 (32,282) (134,690)
Operating Expense (14,465) (11,481) (13,403) (14,965) (23,225) Operating CF (6,493) 13,813 12,822 5,466 (63,081)
G&A Expense (12,163) (9,567) (11,976) (13,700) (17,614) - - - - -
Selling & Marketing Expense (1,860) (2,528) (4,528) (4,188) (9,104) Capital Expenditure - (2,211) (3) (705) (46,212)
Other Income (Expense) (441) 614 3,101 2,923 3,493 Others - 1,429 (3,526) (23,867) 21,146
Operating Profit (2,821) 1,557 16,727 50,575 94,344 Investing CF - (782) (3,529) (24,572) (25,067)
EBITDA (2,349) 2,259 17,958 51,947 96,202 Dividend Paid - - - - -
Interest Income 3 2 3 321 663 Net Borrowing - (13,845) (9,600) 12,662 5,799
Interest Expense (4,848) (4,973) (4,358) (2,270) (4,477) Others - 270 414 13,920 76,201
Forex Gain (Loss) - - - - - Financing CF - (13,575) (9,186) 26,582 82,001
Share of Subsidiary - - - - - - - - - -
Pre-tax Profit (7,665) (3,414) 12,372 48,626 90,530 Net - Cash flow - (544) 107 7,477 (6,147)
Taxes 1,172 (1,351) (4,134) (12,249) (20,780) Adjustment - - - (574) -
Minority Interest - - - - - Cash at Beginning - 754 211 318 7,220
Net Profit (6,493) (4,764) 8,238 36,377 69,751 Cash at Ending - 211 318 7,220 1,073

Balance Sheet Key Ratios

Y/E Dec (IDR Mn) 17A 18A 19A 20A 21A Y/E Dec 17A 18A 19A 20A 21A
Cash 754 211 318 7,220 1,073 Gross Profit Margin (%) 19.0 17.7 23.4 29.3 18.1
Receivables 11,664 18,073 11,084 31,361 68,899 Operating Margin (%) (4.6) 2.1 13.0 22.6 14.5
Inventory 27,299 26,403 59,389 33,147 82,681 Pretax Margin (%) (12.5) (4.6) 9.6 21.8 13.9
Others 8,694 1,772 2,551 22,960 53,296 Net Profit Margin (%) (10.6) (6.5) 6.4 16.3 10.7
Total Current Asset 48,411 46,460 73,343 94,688 205,949 Revenue Growth (%) - 20.4 74.6 73.7 191.2
Net Fixed Asset 4,502 6,240 5,293 5,785 63,706 EBITDA Margin (%) (3.8) 3.1 14.0 23.2 14.8
Other Assets 2,498 2,156 5,556 29,192 7,920 EBITDA Growth (%) - (196.1) 695.1 189.3 85.2
Total Asset 55,410 54,856 84,192 129,665 277,575 Debt to Equity (x) 0.7 (0.1) 3.4 0.3 0.1
Payables 3,863 12,762 11,168 5,644 20,509
ST. Debt and CMLTD 200 160 2,227 2,740 2,990
Other Current Liabilities 45,006 40,386 43,886 46,712 36,201
Current Liability 49,069 53,308 57,281 55,095 59,699
LT. Debt 299 - 16,712 14,647 11,657
Other LT. Liabilities 5,325 4,374 4,709 7,997 6,193
Total Liability 54,693 57,682 78,702 77,739 77,550
Minority Interest - - - - -
Total Equity 717 (2,826) 5,491 51,926 200,025

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 Zyrexindo Mandiri Buana
Bloomberg: ZYRX.IJ | Reuters: ZYRX.JK
Manufacture Sector
20 April 2022 JCI Index: 7,199

Research Team
Suria Dharma Head of Equity Research, Strategy, Banking, Consumer Staples suria.dharma@samuel.co.id +6221 2854 8148
Lionel Priyadi Macro Equity Strategist lionel.priyadi@samuel.co.id +6221 2854 8854
Fikri C Permana Senior Economist fikri.permana@samuel.co.id +6221 2854 8144
Muhamad Alfatih, CSA, CTA, CFTe Senior Technical Analyst m.alfatih@samuel.co.id +6221 2854 8129
William Mamudi, CFTe, CMT Senior Technical Analyst william.mamudi@samuel.co.id +6221 2854 8382
Yosua Zisokhi Cement , Cigarette, Paper, Plantation,Telco Infra, Chemicals yosua.zisokhi@samuel.co.id +6221 2854 8387
Andreas Kristo Saragih Construction, Toll Roads andreas.kristo@samuel.co.id +6221 2864 8303
Dessy Lapagu Aviation, Coal, Metals dessy.lapagu@samuel.co.id +6221 2854 8392
Paula Ruth Telco paula.ruth@samuel.co.id +6221 2854 8332
Olivia Laura Anggita Healthcare, Property olivia.laura@samuel.co.id +6221 2854 8346
M. Farras Farhan Media, Poultry, Oil & Gas, Technology farras.farhan@samuel.co.id +6221 2854 8346
Pebe Peresia Automotive, Consumer Staples pebe.peresia@samuel.co.id +6221 2854 8339
Adolf Richardo Editor adolf.richardo@samuel.co.id +6221 2864 8397
Ashalia Fitri Yuliana Research Associate ashalia.fitri@samuel.co.id +6221 2854 8389

Equity Institutional Team

Benny Bambang Soebagjo Head of Institutional Equity Sales benny.soebagjo@samuel.co.id +6221 2854 8312
Ronny Ardianto Institutional Equity Sales ronny.ardianto@samuel.co.id +6221 2854 8399
Anthony Yunus Institutional Equity Sales anthony.yunus@samuel.co.id +6221 2854 8314
Widya Meidrianto Institutional Equity Sales widya.meidrianto@samuel.co.id +6221 2854 8317
Fachruly Fiater Sales Trader fachruly.fiater@samuel.co.id +6221 2854 8325
Lucia Irawati Sales Trader lucia.irawati@samuel.co.id +6221 2854 8173
Muhammad Faisal Dealer m.faisal@samuel.co.id +6221 2854 8173

Private Wealth Management

Evelyn Satyono Head of PWM Equity Sales evelyn.satyono@samuel.co.id +6221 2854 8380
Clarice Wijana PWM Equity Sales clarice.wijana@samuel.co.id +6221 2854 8395
Gitta Wahyu Retnani PWM Equity Sales gitta.wahyu@samuel.co.id +6221 2854 8365
Vincentius Darren PWM Equity Sales darren@samuel.co.id +6221 2854 8348
Wahyudi Budiyono Dealer wahyudi.budiyono@samuel.co.id +6221 2854 8152

Fixed Income Sales Team

R. Virine Tresna Sundari Head of Fixed Income virine.sundari@samuel.co.id +6221 2854 8170
Rudianto Nugroho Fixed Income Sales rudianto.nugroho@samuel.co.id +6221 2854 8306
Sany Rizal Keliobas Fixed Income Sales sany.rizal@samuel.co.id +6221 2854 8337
Julio Simangunsong Fixed Income Sales julio.natanael@samuel.co.id +6221 28548384

Equity Retail / Online Team

Joseph Soegandhi Head of OLT joseph.soegandhi@samuel.co.id +6221 2854 8872
Nugroho Nuswantoro Head of Marketing Online Trading nugroho.nuswantoro@samuel.co.id +6221 2854 8372
Damargumilang Head of Equity Retail damargumilang@samuel.colid +6221 2854 8309
Salt World Widjaja Retail Equity Sales salt@samuel.co.id +6221 2854 8163
Michael Alexander Equity Retail michael.alexander@samuel.co.id +6221 2854 8369

DISCLAIMER: Analyst Certification: The views expressed in this research accurately reflect the personal views of the analyst(s) about the subject securities or issuers and
no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this research. The
analyst(s) principally responsible for the preparation of this research has taken reasonable care to achieve and maintain independence and objectivity in making any
recommendations. This document is for information only and for the use of the recipient. It is not to be reproduced or copied or made available to others. Under no
circumstances is it to be considered as an offer to sell or solicitation to buy any security. Any recommendation contained in this report may not be suitable for all
investors. Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy, completeness and reliability cannot
be guaranteed. All rights reserved by PT Samuel Sekuritas Indonesia.

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