June 10, 2024
Jakarta June 12, 2024. PT Indonesia Kendaraan Terminal Tbk with stock code (IDX:IPCC) immediately prepared strategic steps to implement a share buyback program. As is known, on June 10, 2024 through the Annual General meeting of Shareholders (AGMS) for the 2023 financial year, IPCC has obtained shareholder approval to carry out a share buyback corporate action with a maximum fund allocation of IDR116billion. in the execution process, the buyback will be implemented in stages, no later than 12 (twelve) months after approval from the AGMS.
Sugeng Mulyadi, President Director, revealed that "the current performance of the Company's shares is still undervalued when compared with the Company's performance which shows increased growth. This corporate action shows management's confidence that the Company's prospects will improve." By looking at the company's strong fundamentals, it is perpendicular to the achievement of net profit of 190.85 billion and growth in terms of EBITDA which increased 4.45% year on year (YoY) from the previous year. Apart from that, the Company's plan to expand its business by managing several vehicle terminals in Eastern Indonesia also shows that in the future its operational, commercial and financial performance will be better than previous years.
Meanwhile, the share buyback will be carried out at a price deemed good and reasonable by the Company taking into account POJK 29/2023. The implementation of the share buyback will not result in a decrease in income or have a material impact on the Company's financing, considering that the funds used come from the Company's internal cash resulting from operational business activities, so the Company's profit and loss report is expected to remain in line with the target. One of the buyback considerations includes the company's very strong cash flow position, after taking into account CAPEX and business development needs, operational costs and future dividend payment plans.
"The company will use internal funding to carry out this buyback action. "Buyback is expected to be able to improve the performance of healthy and quality business growth accompanied by effective and efficient cost control," concluded Wing Megantoro, Director of Finance, Human Resources and Risk Management.
