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PT Integra Indocabinet Tbk 2021 Business Outlook
Sidoarjo, December 15th, 2020
Largest vertically integrated wooden products manufacturer in Indonesia, PT Integra Indocabinet Tbk (WOOD IJ) targeted 2021 sales to grow by 20% YoY.
Targeted 2021 sales growth by 20% YoY
The Company targeted 2021 sales to grow by 20% YoY. The growth will be supported by the strong demand on building component segment particularly Millwork product and growing demand on knock- down furniture. The strong demand on Millwork product is due to the potential implementation of anti- dumping and anti-subsidy duty on Millwork product from China and Brazil, the two largest exporters for Millwork product to US market. The potential duty implementation has shifted US buyers to source out of China and Brazil. Integra as the largest producer for Millwork in South East Asia with its capacity almost 200,00 cbm/year benefitted the most. Concurrently, implemented anti-dumping and anti-subsidy duties and coupled by the trade war tariff on China imported wooden cabinet and vanities products had also caused US buyers to shifted out their demand to other countries such as Indonesia, hence strongly benefit Integra. Additionally, the growing trend towards online shopping has boosted the growth for knock-down furniture demand which will lead to higher sales growth in the furniture segment of Integra.
Sales order keep growing despite container shortage
Despite the container shortage issue, the Company’s sales target will not be impacted. The Company sales terms is FOB shipping point. Buyers decide and appoint the shipping lines and bear the freight and custom clearance costs. The shortage issue should be persisted only for temporarily short term. For the Company’s big buyers, having long term relationship with and strong bargain positions to shipping companies, shipments would not be significantly distracted. However, for some other the smaller buyers, finding shipping lines with competitive rate should be an issue for them. Calculating all the impacts of that situation, we are still confident to have a target of 20% sales growth in 2021.
Included in IDX ESG Leaders index
As of December 8, 2020, the Company was included in IDX ESG Leaders index.
About PT Integra Indocabinet Tbk:
Founded in 1989 in Sidoarjo, East Java, PT Integra Indocabinet Tbk is the largest vertically integrated wooden products manufacturer in Indonesia. Integra has established itself as the fastest growing furniture manufacturer with international and domestic accreditation. Integra promotes the use of sustainable resources and supports the livelihoods of local communities. The group employs over 2,500 team members across Indonesia.
For further information, please contact:
E-mail : email@example.com
Tel : (62 31) 891 0434
Website : www.integragroup-indonesia.com
This press release has been prepared by PT Integra Indocabinet Tbk (WOOD) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of WOOD. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. Integra disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither Integra nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Certain statements in this release are or may be forward-looking statements. These statements typically contain words such as “will”, “expects” and “anticipates” and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize; actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.