Listed firms told to reveal failures in revenue targets
Listed firms told to reveal failures in revenue targets
JAKARTA (JP): Chairman of the Capital Market Supervisory
Agency (Bapepam) Bacelius Ruru has urged newly-listed companies
to publicly disclose their failures to achieve earning
projections.
"Disclosing failures to achieve earning projections is a must
for newly-listed firms so that the investing public will
understand what is happening in their business activities," Ruru
told The Jakarta Post.
The chairman of the capital market watchdog, however, ruled
out the possibility of issuing disciplinary measures, saying that
the failure to achieve earning projections was often unavoidable
due to unfavorable business conditions.
Bapepam, beginning early last year, requires new share issuers
to state projections of their sales and earnings for the first
year of their listings on their prospectus, an informational
document stating the intent to issue securities required by
Bapepam.
Capital market analysts, however, said that only some of newly
listed companies abide by the ruling despite the fact that many
of them have failed to perform as expected.
Andreas Lauw of the Indonesia Business Data Center said the
announcement of failures to achieve targets was limited to
certain parties.
"PT Aneka Kimia Raya was the only newly-listed firm which
announced the revision of its financial projection to the press,"
he said.
Penalty
He said that it is important for Bapepam to consider the use
of a penalty to punish those newly-listed companies that cannot
keep the promises in their prospectus.
Other analysts said that a penalty is essential to protect the
investing public from being cheated by securities issuers, who
are often charged with manipulating their financial reports to
attract investors.
According to the data of the center, only 22 of 41 companies
listed on the Jakarta Stock Exchange (JSX) last year were able to
achieve the projections of their earnings for 1994.
The 1994 sales of PT Sumalindo Lestari, for example, were only
71.18 percent of its projection, while its profit was only 36.88
percent of the target due to the fall in plywood prices on
overseas markets.
Other new listings, which failed to meet their initial profit
targets for 1994, include Ometraco Realty, Jaya Real Property,
Suparma, Panca Wiratama, Jeewon Jaya, Putra Surya Perkasa, Karell
Indonesia, Steady Safe, Intinusa Selareksa, Enseval, Asiana IMI,
Perdana Cipta Multi Finance, Indofood, Pudjiadi Prestige, Bank
Mashill, Centris Multipersada, Ades Alfindo, Super Indah Makmur
and Ugahari.
The best performers of the new listings include Wicaksana
Overseas, Bank Rama and Langgeng Makmur. Profits of the three
were around 12 percent above their initial projections. (hen)