Case Study of PT Cowell Development Tbk.

Prepared by : Luthfi Firdaus Sudjana

PT Cowell Development Tbk. (COWL)
• Industry Sector : Property, Real Estate & Building Construction
• Industry Sub Sector : Property And Real Estate (61)
• Went for Initial Public Offering on December 2007
• Listed as “COWL” in IDX Development Board.

• Parent Company : PT Gama Nusapala (immediate)

PT Lestari Investindo Mandiri (ultimate)

• PT Cowell Development Tbk also owns several subsidiary companies, one of

which is PT Plaza Andika Lestari
• Sinarmas Land, Agung Podomoro, Ciputra Land, Summarecon as competitors in
the same industry.
PT Cowell Development Tbk. (COWL)
• Board of Commissioners
• President Commisioner : Harijanto Thany
• Commissioner : Wahyu Hartanto
• Independent Commissioner : Ida Bagus Oka Nila

• Board of Directors
• President Director : Darwin Fernandes Manurung
• Director : Firdaus Fahmi
• Independent Director : Ratnasari

• 6 Existing projects
• 5 in Jabodetabek area, 1 in Balikpapan
Business Model – Real Estate Development
• Development of Tangible Asset
• From scratch or development of existing building into a more valuable asset
• Cowell Development focuses on commercial and residential development
• Real estate industry offers income & capital appreciation over time
• Rather than depreciation because value of land always goes up, especially when there are
land development going on in the area
• Heavy investment on land

+ capital appreciation - illiquid

+ steady income for buyer/investor, - influenced by local factors
from renting or appreciation -
PT Cowell Development Tbk. (COWL)
• Board of Commissioners
• President Commisioner : Harijanto Thany
• Commissioner : Wahyu Hartanto
• Independent Commissioner : Ida Bagus Oka Nila

• Board of Directors
• President Director : Darwin Fernandes Manurung
• Director : Firdaus Fahmi
• Independent Director : Ratnasari
Performance
PT. Cowell Development Tbk. profitability decreases from 2017 to 2018
(reflected by higher number of loss in Statement of P&L)
• Higher foreign exchange differentials accounts the most
• Due to large number of loan interest to be paid on the year of 2018.
• Another factor is a new loan facility from PT. Karya Agung Putra Indonesia was
obtained for land acquisition.

• Slight decrease of revenue in the year of 2018 as compared to 2017

• My hypothesis is that number of sales remains roughly the same, but huge capital
expenditure was invested in one of Cowell’s the project
Income Statement /
Statement of Profit and Loss for the year ended December 31, 2018
Statement of Cash Flows
for the year ended December 31, 2018
Analysis

• As PT Cowell Development Tbk is in the Real Estate Developer industry, it is

typical that they spend huge sum of money in the construction while revenue
stream does not progress well.
• This can be seen from the high number of inventory
• Identical amount of revenue in the year 2017 relative to 2018.
• Resulted from stagnant sales which may be caused by political event i.e. Presidential
Election 2018 which made low consumer expenditure in the real estate market.

• Current Ratio of 0.74 means that PT Cowell Development Tbk is liquid by the
industry average.
• Solvency Ratio of 0.75 (Debt-to-Asset) means most of the company’s asset is
financed by debt. Debt-to-equity ratio is 3.07
• Most of the cash flow comes from financing activities as compared to
operating and investing activities.
Recommendation

• PT Cowell Development Tbk should encourage more sales to counter the

increasing number of liabilities
• This can be done by a. implementing a new marketing strategy to increase number of
revenue; b. re-adjusting price per unit or volume of the goods sold in the market.

• Increasing profitability can also be done through reducing number of variable cost
through more negotiation with suppliers of raw materials, or re-adjusting the labor cost
to obtain most productivity