JAKARTA - PT Multikarya Asia Pasifik Raya Tbk (MKAP) decides to allocate the entire net profit of 2023, worth IDR 32 billion, as working capital, according to Annual General Meeting of Shareholders held on Wednesday, May 29, 2024.

During the Annual Public Expose held today (29/5), the board of directors of MKAP claims to prepare capital expenditure (capex) budget of IDR 30 billion in the fiscal year 2024. However, it is also mentioned that 60-70% of it will utilise external loans.

“The external fund source comes from investment credit with UOB Bank,” revealed Daniel Handoko, Director of MKAP. The directors also admitted that for its operational activities, the company indeed requires a huge amount of working capital.

“Thankfully, we have formed loyal relationship with banks, both private and government, thereby allowing us to secure lower interest rate,” added Daniel.

Out of the capex of IDR 30 billion, IDR 10 billion will be allocated to acquire testing tools, as well as storage, for Phase 2 of its latest workshop in Citeureup. According to Eric Handoko, President Director of MKAP, the company also plans to establish a new workshop in Duri, allocating budget of IDR 6 billion.

“The remainder will be allocated as reserves to acquire heacy equipment and operational vehicels,” added Eric.

Until Q1 2024, MKAP’s revenue was reported hitting IDR 79.7 billion, with net profit of IDR 15.5 billion. In other words, MKAP has already attained 20% of its revenue target in 2024, which is set to IDR 400 billion.

This year, several major projects that will be managed by MKAP include screw pump project in Batang, as well as an injection pump project from Pertamina Hulu Rokan, the latter of which is said to cover 23% of its total target. In addition, there are also projects from Pertagas, Elnusa, and PGAS Solution, which are said to bring in approximately 24% of total contract target this year.

“We are very optimistic that it will be a good year. However, it all depends on our performance and delivery,” said Eric.

From the stock performance perspective, MKAP also shows satisfactory performance with 273.91% surge until May 20, 224. Its stock price skyrocketed to IDR 430 per share from IDR 115 per share during its initial listing on February 12, 2024. (ZH)