PT Gunung Raja Paksi Tbk Obtains idA Rating from PEFINDO
Cikarang Barat, July 28, 2023 - PT Gunung Raja Paksi Tbk (GGRP) has obtained an idA rating with a stable outlook from PT Pemeringkat Efek Indonesia (PEFINDO). This rating reflects GGRP's achievement in a strong market position, robust profit margins, and solid cash flow protection. The rating for GGRP has been upgraded this year from the previous idA-, showcasing the company's strengthening financial performance.
Several factors drive the upgrade in GGRP's rating. As a leading player in the steel industry in Indonesia, GGRP achieved sales of USD 945.5 million in 2022, with sales volume accounting for approximately 7% of the steel consumption in Indonesia. In the first quarter of 2023, GGRP managed to improve its gross profit margin and EBITDA to 10.9% and 11.9%, respectively. This positive performance was supported by effective management of operational cash flow, with a short accounts receivable turnover ratio compared to a longer accounts payable turnover ratio. These achievements result from the business and management transformation steps implemented since the third quarter of 2020.
GGRP's Finance Director, Roymond, stated, "GGRP's commitment to maintaining a focus on sustainable growth while upholding a strong financial performance is reflected in this rating upgrade. This rating serves as an encouragement for us to continue prioritizing sustainability in our steel production processes. As we advance, we will continue to work hard to maintain all stakeholders' trust and positively contribute to the industry and society," Roymond added.
The idA rating with a stable outlook from PEFINDO is undoubtedly a positive signal for all GGRP stakeholders. This rating indicates that GGRP has a strong ability to meet its long-term financial obligations and has good prospects for sustainable growth in the future.
PEFINDO is the oldest and most trusted credit rating agency in Indonesia, established on December 21, 1993, based on the initiative of the Financial Services Authority (OJK), formerly known as the Capital Market Supervisory Agency and Bank Indonesia. To date, PEFINDO has provided credit ratings for more than 1100 entities and capital market instruments. PEFINDO also has strategic cooperation with the leading global credit rating agency Standard & Poor's (S&P) since 1996, allowing the adoption of internationally standardized rating methodologies.