Saratoga (SRTG) Losses Shrink by 96.34% in the First Half of 2024

STOCK RECOMMENDATION - JAKARTA. PT Saratoga Investama Sedaya Tbk (SRTG) has reported a significant reduction in losses by 96.34% on a year-on-year basis (YoY) for the first half of 2024.

According to financial reports, Saratoga recorded a net loss of IDR 446.39 billion in the first half of 2024. This is a stark contrast to the same period last year when the company reported a net loss of IDR 12.21 trillion.

Consequently, the basic loss per share was recorded at IDR 33 in the first half of 2024, down from IDR 904 in the same period last year.

The decrease in net loss is attributed to the shrinking net loss on investments in stocks and other securities during this period. SRTG's net loss on investments in stocks and other securities shrank to IDR 1.37 trillion, compared to the same period in 2023 when the company reported a loss of IDR 15 trillion.

SRTG also reported a net asset value (NAV) of IDR 49.4 trillion in the first half of 2024. Saratoga's NAV grew by 4% quarter-on-quarter (QoQ) compared to the first quarter of 2024, which was IDR 47.5 trillion.

Saratoga's Finance Director, Lany D. Wong, stated that the increase in NAV was supported by positive performance and rising stock prices in the portfolio, such as PT Adaro Energi Indonesia Tbk. (ADRO) and PT Merdeka Copper Gold Tbk (MDKA), as well as growth from non-public company portfolios.

"Despite the dynamic global market and economic conditions, Saratoga has been able to maintain positive financial performance," she said in an official statement on Tuesday (30/7).

Saratoga's Investment Director, Devin Wirawan, explained that one of Saratoga's significant investments during the first half of 2024 was in the healthcare sector through the majority acquisition of Brawijaya Healthcare (Brawijaya).

Currently, Brawijaya owns and operates five hospitals and two clinics spread across Jakarta, Depok, Bandung, and Tangerang.

"We believe Brawijaya has strong fundamentals to continue growing and expanding its hospital network in Indonesia," Devin revealed in an official statement on Tuesday (30/7).

In addition to the healthcare sector, Saratoga will continue to develop its investments in digital infrastructure such as Bersama Digital Data Centres (BDDC), which is already part of Saratoga's portfolio.

According to Devin, the potential for the digital infrastructure sector in Indonesia is still very large. Saratoga will continue to optimize every opportunity and play an active role in driving national economic growth.

"We are committed to continuously increasing investment in strategic sectors that contribute significantly to the country's economy, one of which is by strengthening existing portfolio investments and increasing investment in companies with sustainable growth prospects," he revealed.

Kiwoom Securities Indonesia analyst, Miftahul Khaer, sees that the strengthening of SRTG's fundamental performance in the first half of 2024 is still related to dividends and portfolio investment monetization.

"Saratoga even managed to record a cash flow of IDR 2.5 trillion from dividends and portfolio investment monetization during this period," Miftahul told Kontan.co.id on Wednesday (31/7).

Khaer appreciates SRTG's focus on the healthcare sector through the majority acquisition of Brawijaya Healthcare shares. He views the healthcare sector as one of the business lines with good long-term business growth prospects.

Khaer recommends trading buy for SRTG with a target price of IDR 1,755 per share.

MNC Securities analyst, Herditya Wicaksana, sees that SRTG's stock movement is at the support level of IDR 1,610 per share and resistance of IDR 1,690 per share. Herditya recommends a speculative buy for SRTG with a target price of IDR 1,712–IDR 1,750 per share.