Equal · Financial Report

Salim Ivomas Pratama

SIMP/FY2021–FY2025/Educational Analysis/IDR/Data source · 2026-07-03

ROE = tax × interest × margin × turnover × leverage

	FY2021	FY2022	FY2023	FY2024	FY2025
Tax burdendriver	0.37x	0.50x	0.49x	0.46x	0.59x
Interest burden	0.80x	0.80x	0.71x	0.86x	0.86x
Operating margin	17.2%	17.0%	13.2%	24.6%	19.3%
Asset turnover	0.55x	0.49x	0.46x	0.43x	0.51x
Leverage (equity mult.)	1.81x	1.71x	1.61x	1.55x	1.56x
= Return on Equity (consolidated)	5.0%	5.7%	3.4%	6.5%	7.8%
Return on Invested Capital (ROIC)	4.7%	5.7%	4.1%	6.8%	8.6%

Consolidated (pre-minority-interest) basis; the headline ROE in the ratio grid is owners’ basis.

Liquidity

	FY2021	FY2022	FY2023	FY2024	FY2025
Current Ratio(Current Assets / Current Liabilities)	1.04x	1.10x	1.05x	1.51x	1.27x
Quick Ratio((Current Assets − Inventory) / Current Liabilities)	0.75x	0.76x	0.79x	1.05x	0.98x
Cash Ratio(Cash / Current Liabilities)	0.41x	0.45x	0.55x	0.66x	0.70x
Working Capital(Current Assets − Current Liabilities)	Rp 367 M	Rp 982 M	Rp 486 M	Rp 4.5 T	Rp 3.3 T

Leverage & Solvency

	FY2021	FY2022	FY2023	FY2024	FY2025
Debt to Equity (DER)(Total Debt / Total Equity)	0.52x	0.44x	0.39x	0.35x	0.36x
Liabilities to Equity(Total Liabilities / Total Equity)	0.81x	0.71x	0.61x	0.55x	0.56x
Debt to Assets(Total Debt / Total Assets)	0.29x	0.26x	0.24x	0.22x	0.23x
Net Debt(Total Debt − Cash)	Rp 6.6 T	Rp 5.0 T	Rp 3.4 T	Rp 2.6 T	Rp 1.2 T
Interest Coverage(EBIT / Interest Expense)	4.96x	4.95x	3.46x	7.05x	7.29x
Equity Multiplier (Assets ÷ Equity)	1.81x	1.71x	1.61x	1.55x	1.56x

Profitability

	FY2021	FY2022	FY2023	FY2024	FY2025
Gross Margin(Gross Profit / Revenue)	26.7%	25.4%	21.0%	32.2%	25.2%
Operating Margin(EBIT / Revenue)	17.2%	17.0%	13.2%	24.6%	19.3%
Net Margin(Net Income / Revenue)	5.0%	6.7%	4.6%	9.7%	9.8%
EBITDA(EBIT + D&A)	Rp 4.7 T	Rp 4.3 T	Rp 3.5 T	Rp 5.3 T	Rp 5.5 T
EBITDA Margin(EBITDA / Revenue)	24.0%	24.4%	21.8%	33.2%	26.0%
Return on Assets (ROA)(Net Income / Total Assets)	2.8%	3.3%	2.1%	4.2%	5.0%
Return on Equity (ROE)(Net Income (Owners) / Equity (Owners))	6.3%	7.1%	4.2%	8.3%	10.1%
Tax Burden (Net ÷ Pretax)	0.37x	0.50x	0.49x	0.46x	0.59x
Interest Burden (Pretax ÷ EBIT)	0.80x	0.80x	0.71x	0.86x	0.86x
Return on Invested Capital (ROIC)	4.7%	5.7%	4.1%	6.8%	8.6%

Operations & Efficiency

Turnover	FY2021	FY2022	FY2023	FY2024	FY2025
Asset Turnover(Revenue / Total Assets)	0.55x	0.49x	0.46x	0.43x	0.51x
Inventory Turnover(COGS / Inventory)	5.43x	4.06x	5.12x	2.71x	4.51x
Receivables Turnover(Revenue / Receivables)	13.44x	14.83x	21.33x	13.99x	15.61x
Payables Turnover(COGS / Payables)	19.09x	12.27x	15.24x	12.34x	11.82x

Conversion Period	FY2021	FY2022	FY2023	FY2024	FY2025
Days Inventory Outstanding (DIO)(365 × Inventory / COGS)	67.3 days	89.9 days	71.3 days	134.7 days	81.0 days
Days Sales Outstanding (DSO)(365 × Receivables / Revenue)	27.2 days	24.6 days	17.1 days	26.1 days	23.4 days
Days Payable Outstanding (DPO)(365 × Payables / COGS)	19.1 days	29.7 days	24.0 days	29.6 days	30.9 days
Cash Conversion Cycle (CCC)(DIO + DSO − DPO)	75.3 days	84.7 days	64.5 days	131.2 days	73.5 days

Cash Flow

	FY2021	FY2022	FY2023	FY2024	FY2025
Free Cash Flow(Operating Cash Flow − Capex)	Rp 2.5 T	Rp 2.2 T	Rp 2.6 T	Rp 1.1 T	Rp 2.0 T

Valuation

price as-of 2026-07-31fundamentals: FY2025

Price Rp 615 · market cap Rp 9.5 T

Multiple	SIMP	Peer median	vs median
P/E	4.61x	5.16x	-11%
P/B	0.47x	0.56x	-17%
P/S	0.45x	0.46x	-2%
EV/EBITDA	3.09x	3.02x	+2%
EV/EBIT	4.15x	4.15x	0%
EV/Sales	0.80x	0.39x	+105%
FCF Yield	20.96%	25.92%	-19%
Dividend Yield	3.25%	4.55%	-28%

Only 3 peers are covered here, so the median is itself one of the members. A 0% gap can simply mean SIMP sits at the median.

EV = mkt cap Rp 9.5 T + debt Rp 9.5 T − cash Rp 8.3 T + minority interest Rp 6.2 T = Rp 17 T

What the price implies

At today’s price, the market is paying for 1.6%/yr FCF growth (-1.2% at 12.0% to 4.3% at 16.0% discount rates). Delivered over the last 4 years: -5.5% FCF · 1.7% revenue.

Reverse DCF: single-stage FCF, terminal growth 2.5%, discount band 12.0–16.0% (β=1; build cited in Methodology). Not a forecast.

Forward DCF (glass-box)

This model projects the operating cash the whole business generates, discounts it back at the blended cost of capital, and subtracts net debt. What remains is the equity value, stated per share. Every input below comes from the company's own audited record or from cited market data, and you can adjust each one yourself.

Assumption	Value	Basis
Rf (risk-free)	7.26%	Indonesia 10Y government bond, 8 Jul 2026
ERP (Rm − Rf)	6.69%	Damodaran Indonesia, Jul 2026 (Baa2, CRP 2.46%)
β	0.81 → 1.34	Farming/Agriculture (unlevered) relevered at own D/E 1.00
Cost of equity	16.20%	Rf + β × ERP
Cost of debt	5.86%	FY2025 interest expense ÷ total debt
Tax rate	35.0%	median effective rate FY2021–FY2025 computed to 50.7%, CLAMPED to 35%: above that ceiling the pretax approximation is carrying minority interests, which are already deducted separately from enterprise value, rather than tax
WACC	10.00%	50% E × CoE + 50% D × Kd × (1 − t)
Revenue growth (yr 1, fading)	1.7%	delivered 4-yr revenue CAGR 1.7%, fading linearly to terminal
EBIT margin	19.0%	mean EBIT margin, last 3 FYs
D&A / revenue	8.0%	mean D&A/revenue, last 3 FYs
Capex / revenue	7.5%	mean capex/revenue, last 3 FYs, for the explicit years; in the terminal year capex falls to replacement level (equal to depreciation, 8.0% of revenue) because holding a build-phase or pause-phase ratio in perpetuity misprices the company in whichever direction that phase points
ΔNWC / Δrevenue	-1.2%	median ΔNWC/Δrevenue across the seeded years (NWC = AR + inventory − AP)
Terminal growth	2.5%	BI inflation-target midpoint (2.5% ± 1%)

Growth path

year 1 → fading to terminal over 5 yrs1.7%

EBIT margin19.0%

WACC10.0%

Terminal growth2.5%

Explicit years5

Year	+1	+2	+3	+4	+5	T∞
Growth	1.7%	1.9%	2.1%	2.3%	2.5%	2.5%
Revenue	Rp 21 T	Rp 22 T	Rp 22 T	Rp 23 T	Rp 23 T	Rp 24 T
EBIT	Rp 4.1 T	Rp 4.2 T	Rp 4.2 T	Rp 4.3 T	Rp 4.5 T	Rp 4.6 T
NOPAT	Rp 2.7 T	Rp 2.7 T	Rp 2.8 T	Rp 2.8 T	Rp 2.9 T	Rp 3.0 T
+ D&A	Rp 1.7 T	Rp 1.7 T	Rp 1.8 T	Rp 1.8 T	Rp 1.9 T	Rp 1.9 T
− Capex	Rp 1.6 T	Rp 1.6 T	Rp 1.7 T	Rp 1.7 T	Rp 1.7 T	Rp 1.9 T
− ΔNWC	-Rp 4.5 M	-Rp 5.1 M	-Rp 5.7 M	-Rp 6.3 M	-Rp 7.0 M	-Rp 7.2 M
FCFF	Rp 2.8 T	Rp 2.8 T	Rp 2.9 T	Rp 2.9 T	Rp 3.0 T	Rp 3.0 T
PV	Rp 2.5 T	Rp 2.3 T	Rp 2.2 T	Rp 2.0 T	Rp 1.9 T	Rp 25 T

Check it yourself: revenue × margin = EBIT · NOPAT = EBIT × (1 − tax) · FCFF = NOPAT + D&A − Capex − ΔNWC · PV = FCFF ÷ (1+WACC)^yr · TV = FCFF(T∞) ÷ (WACC − g), discounted from year 5

EV = PV(explicit) Rp 11 T + PV(TV) Rp 25 T = Rp 35 T · TV 69% of EV · − net debt Rp 1.2 T − minority Rp 6.2 T

Model output: Rp 1,816/share (+195% vs price Rp 615)· exit-multiple check (3.0x): Rp 992

Under these assumptions the model lands 195% above today's price. The market, in other words, is paying for slower growth, a thinner margin, or a higher discount rate than the inputs here assume.

Sensitivity (per share, Rp)

g \ WACC	9.0%	10.0%	11.0%
2.0%	1,993	1,688	1,450
2.5%	2,164	1,816	1,550
3.0%	2,364	1,963	1,662

Model output under the stated assumptions. Every input above comes from the company's own audited record or from cited market data, and every one can be adjusted. This is not a price target and not advice.

Educational analysis. Multiples pair today’s price with the latest audited fiscal year (trailing-FY convention); peer figures are the covered peer sample, not the whole market. Never a price target.

Macro backdropfull backdrop + sensitivity map →

BI Rate 5.75%IDR/USD 18,05810Y government bond yield 7.26%Inflation 3.34%(as-of 2026-07-31)

CPO ↑(H)Rupiah weaker(M)

Income Statement

	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	Rp 20 T	Rp 18 T	Rp 16 T	Rp 16 T	Rp 21 T
Cost of Goods Sold	Rp 14 T	Rp 13 T	Rp 13 T	Rp 11 T	Rp 16 T
Gross Profit	Rp 5.3 T	Rp 4.5 T	Rp 3.4 T	Rp 5.1 T	Rp 5.3 T
Operating Income (EBIT)	Rp 3.4 T	Rp 3.0 T	Rp 2.1 T	Rp 3.9 T	Rp 4.1 T
Interest Expense	Rp 681 M	Rp 611 M	Rp 612 M	Rp 556 M	Rp 559 M
Net Income	Rp 990 M	Rp 1.2 T	Rp 736 M	Rp 1.5 T	Rp 2.1 T
Net Income Attributable to Owners	Rp 990 M	Rp 1.2 T	Rp 736 M	Rp 1.5 T	Rp 2.1 T
Depreciation & Amortization	Rp 1.3 T	Rp 1.3 T	Rp 1.4 T	Rp 1.4 T	Rp 1.4 T

Balance Sheet

	FY2021	FY2022	FY2023	FY2024	FY2025
Cash & Equivalents	Rp 3.7 T	Rp 4.3 T	Rp 5.2 T	Rp 5.8 T	Rp 8.3 T
Accounts Receivable	Rp 1.5 T	Rp 1.2 T	Rp 750 M	Rp 1.1 T	Rp 1.3 T
Inventory	Rp 2.7 T	Rp 3.3 T	Rp 2.5 T	Rp 4.0 T	Rp 3.5 T
Current Assets	Rp 9.5 T	Rp 10 T	Rp 9.9 T	Rp 13 T	Rp 15 T
Total Assets	Rp 36 T	Rp 36 T	Rp 35 T	Rp 37 T	Rp 41 T
Accounts Payable	Rp 755 M	Rp 1.1 T	Rp 830 M	Rp 877 M	Rp 1.3 T
Current Liabilities	Rp 9.2 T	Rp 9.5 T	Rp 9.4 T	Rp 8.8 T	Rp 12 T
Total Liabilities	Rp 16 T	Rp 15 T	Rp 13 T	Rp 13 T	Rp 15 T
Total Interest-Bearing Debt	Rp 10 T	Rp 9.3 T	Rp 8.6 T	Rp 8.3 T	Rp 9.5 T
Total Equity	Rp 20 T	Rp 21 T	Rp 22 T	Rp 24 T	Rp 27 T
Equity Attributable to Owners	Rp 16 T	Rp 17 T	Rp 17 T	Rp 19 T	Rp 20 T

Cash Flow Statement

	FY2021	FY2022	FY2023	FY2024	FY2025
Operating Cash Flow	Rp 3.7 T	Rp 3.6 T	Rp 3.8 T	Rp 2.3 T	Rp 3.4 T
Capital Expenditure	Rp 1.2 T	Rp 1.5 T	Rp 1.3 T	Rp 1.2 T	Rp 1.4 T

Company Deep Analysis

Reviewed: 2026-07-31

Analyst Verdict

SIMP revenue (T IDR): 19.66 (2021) → 17.79 (2022) → 16.00 (2023) → 15.97 (2024) → 21.06 (2025). Gross margin: 26.7% → 25.4% → 21.0% → 32.2% → 25.2%. OPM: 17.2% → 17.0% → 13.2% → 24.6% → 19.3%. Net margin: 5.0% → 6.7% → 4.6% → 9.7% → 9.8%. ROE (owners’ basis): 6.3% → 7.1% → 4.2% → 8.3% → 10.1%. ROIC: 4.7% → 5.7% → 4.1% → 6.8% → 8.6%. D/E: 0.52× → 0.44× → 0.39× → 0.35× → 0.36×. Net debt (T IDR): 6.63 → 5.01 → 3.40 → 2.56 → 1.19. Interest coverage: 4.96× → 4.95× → 3.46× → 7.05× → 7.29×. FCF (T IDR): +2.50 → +2.18 → +2.57 → +1.07 → +2.00. Asset turnover: 0.55× → 0.49× → 0.46× → 0.43× → 0.51×. Two structural gaps versus pure-upstream LSIP are visible in every year: (1) the margin gap; downstream refining and branded cooking oil add revenue at commodity-processing margins, so SIMP nets 9.8% where LSIP nets 34.2% (FY2025); (2) the minority leakage; SIMP consolidates LSIP but ~40% of LSIP’s earnings belong to minorities, so owners’ ROE (10.1%) sits below what consolidated margins suggest. The five-year arc is nonetheless clearly positive: net debt down Rp5.4tn, interest coverage doubled, ROIC up from 4.7% to 8.6%; approaching, though not yet clearing, a typical ~10% cost of capital. FY2024 shows the same inventory-build artefact as its subsidiary (GM spike to 32.2%, DIO 135 days, CCC 131 days; FY2025 normalises to 81 days).

Business Model

Two integrated divisions. (1) Plantations: oil palm across Sumatra and Kalimantan; roughly a quarter-million planted hectares group-wide including consolidated LSIP, plus sugar cane, rubber and other crops; sells CPO internally and externally. (2) Edible Oils & Fats (EOF): refineries converting CPO into branded consumer products; Bimoli (cooking oil) and Palmia (margarine/shortening) among Indonesia’s longest-established kitchen brands; distributed nationally through the Indofood ecosystem. The model captures the full seed-to-shelf chain: upstream margin when CPO is high, downstream volume stability when it is low, at the cost of blended returns that sit between the two.

Segments

Plantation division (CPO, PK, sugar, rubber) and EOF division (branded cooking oil, margarine, bulk oils). The FY2022–2024 revenue slide (Rp19.7tn → 16.0tn) tracks both the CPO price normalisation and the cooking-oil policy shock of 2022 (export ban, domestic price caps); FY2025’s +32% rebound to Rp21.1tn combines recovered CPO prices with restored downstream volumes. EOF gives SIMP something LSIP lacks: a consumer franchise whose volumes are policy-sensitive but demand-stable (cooking oil is a staple).

Value Chain & Positioning

Own + LSIP estates → FFB → CPO mills → SIMP refineries (RBD olein/stearin) → branding & packaging (Bimoli, Palmia) → Indofood distribution → retail/foodservice; parallel bulk CPO sales and biodiesel-programme supply. Sugar: cane estates → mills → industrial sugar.

Competitive Forces (Porter’s 5)

Supplier powerLow

How much leverage input/funding providers have over pricing.

Upstream self-supply covers a large share of refinery feedstock (including LSIP’s output); external CPO is a benchmark-priced commodity; fertiliser and packaging competitively sourced.

Implication → Integration is the point: internal feedstock mutes the squeeze that pure refiners face when CPO spikes.

Buyer powerMedium

How much leverage customers have to push prices down.

Bulk CPO buyers pay benchmark (no power either side). Branded cooking oil faces modern-trade retailers and, more importantly, the GOVERNMENT as a de-facto buyer-side force: HET price caps and DMO rules directly set what Bimoli can charge (2022 precedent).

Implication → Downstream pricing power is real but policy-capped: the brand premium survives, the crisis-year margin does not.

Threat of new entryLow

How easily new competitors can enter the market.

Upstream blocked by the moratorium; downstream needs refining scale, a national distribution network, and decades of brand equity: Bimoli dates to the 1970s. New entrants attack niches (premium, pouch formats), not the core.

Implication → The integrated position is defensible; the risk is not entry but substitution among incumbent brands.

Threat of substitutesMedium

Risk that alternative products/services replace demand.

At the commodity layer, other vegetable oils. At the shelf, rival cooking-oil brands: Sania/Filma (Sinar Mas/GAR ecosystem), Fortune (Wilmar), Tropical, plus the state-backed budget MinyaKita channel that caps the low end.

Implication → Brand strength defends share but the category is price-sensitive: premiumisation headroom is thin in a staple.

Competitive rivalryHigh

Intensity of competition among existing players.

Both layers are crowded: upstream against every CPO producer on the same benchmark; downstream against Wilmar and GAR, both larger refiners globally, fighting for the same modern-trade shelf.

Implication → SIMP’s edge is the captive Indofood distribution rail and heritage brands, not scale: it wins on reach, not cost.

Moat / Competitive Edge

Three-layer moat: irreplaceable planted land (moratorium), control of LSIP’s low-cost estates and seed IP, and the Bimoli/Palmia brand franchise riding Indofood’s national distribution. The offsetting structural weakness is equally clear in the numbers: minorities take ~40% of the best asset’s earnings (LSIP), and the downstream layer converts fat upstream margins into single-digit net margins. ROIC 8.6% (FY2025) is the highest of the five years but still shy of cost of capital: the moat protects the franchise, not yet the economics.

Key Drivers & Sensitivities

CPO Price (upstream margin engine)
Drives the plantation division exactly as it does LSIP: the FY2023 trough cut group OPM to 13.2% and ROE to 4.2%; the FY2024–25 recovery restored OPM to ~19–25% and ROE to 10.1%. Integration halves the amplitude versus pure upstream: downstream buys the same CPO the plantations sell.
Cooking-oil policy (HET/DMO)
The 2022 crisis is the template: export ban plus retail price caps compressed branded-oil economics while upstream boomed; a policy hedge inside the group, but a downstream margin risk that can return any time domestic cooking-oil prices spike politically.
Deleveraging → equity value transfer
Net debt fell Rp6.6tn → Rp1.2tn over FY2021–25 while interest coverage rose 4.96× → 7.29×. At current FCF (~Rp2tn/yr) SIMP reaches net cash within a year or two: at which point the LSIP question (what to do with surplus cash) becomes SIMP’s question too.

Linkages

SIMP is the hinge of the Salim palm chain: LSIP (subsidiary, tracked comp) supplies it; INDF (parent chain, tracked comp) distributes its brands; ICBP’s noodle seasoning oils and the national biodiesel programme sit downstream. Macro hooks: CPO cycle, cooking-oil price policy (Kemendag), B40/BPDPKS, EUDR, rupiah, rural purchasing power.

Recent Developments

FY2025 broke the pattern of the three years before it. Revenue rose 31.9% to Rp21.06tn after three consecutive declines, from Rp19.66tn in FY2021 down to Rp15.97tn in FY2024, and ROE reached 10.1%, the first double-digit reading of the series. Net margin very nearly doubled across the window, 5.0% to 9.8%, and ROIC moved 4.7% to 8.6%. The leverage story is quieter but real: gross debt is little changed at Rp9.54tn, yet cash built from Rp3.73tn to Rp8.35tn, so net debt fell to Rp1.19tn. Operating margin remains the swing factor at 17.2%, 17.0%, 13.2%, 24.6% and 19.3%.

Regulation

Everything that binds LSIP upstream (ISPO, moratorium, BPDPKS levy, export tax, EUDR) plus the downstream layer: HET retail price ceilings on cooking oil, DMO/domestic-supply obligations, halal certification (mandatory), BPOM food registration, and OJK related-party rules across the LSIP/INDF chain.

ESG & Sustainability

Group-wide ISPO/RSPO programmes, no-burn policy, plasma schemes; downstream adds food-safety and nutrition dimensions (fortification standards for cooking oil). As a staple-goods supplier, SIMP carries social-affordability exposure: cooking-oil price spikes become political events (2022). EUDR readiness across a quarter-million hectares plus smallholder supply is the hard traceability problem.

Risks

Cooking-oil policy intervention (2022 template: export ban + price caps) compressing downstream margins at upstream’s best moments
CPO trough repeating FY2023 (ROE 4.2%, ROIC 4.1%: well below cost of capital)
Minority leakage is permanent: ~40% of LSIP’s earnings never reach SIMP owners
ROIC (8.6% best year) still below a ~10% cost of capital: the integration discount persists
Brand share erosion vs Wilmar (Fortune) and GAR (Sania/Filma) in a price-sensitive staple category

Outlook & What to Watch

Base: CPO near FY2025 levels + stable cooking-oil policy → ROE ~9–11%, net cash reached within ~2 years, ROIC finally crossing cost of capital. Bull: sustained CPO strength with downstream volumes intact → ROE toward low teens and a re-rating as the deleveraging completes. Bear: a 2022-style policy squeeze coinciding with a CPO downturn → the FY2023 shape returns (ROE ~4%). Watch-item: what management does at net-cash; payout step-up would mark the shift from repair to return. (Interpretation, not a forecast.)

Key KPIs

Net Debt: Rp6.63tn → Rp1.19tn (FY21–25): the deleveraging arc; net cash is the next milestone
ROIC vs ~10% CoC: 4.7% → 8.6%: improving but the integration discount is not yet closed
Net Margin Gap vs LSIP: 9.8% vs 34.2% (FY25): the price of downstream integration and minority leakage
Cooking-Oil Policy (HET/DMO): The downstream margin regulator: 2022 is the stress template
Interest Coverage: 3.46× (FY23 trough) → 7.29× (FY25): solvency comfort restored

Sources

Curated narrative (educational interpretation), backed by the linked sources. The figures above are deterministic. Not investment advice.