Basic Materials

Indonesia / Basic Materials /  Basic Materials

The Basic Materials subsector on the Indonesia Stock Exchange encompasses a range of industries such as cooper, basic chemicals, diversified metals & minerals, gold, paper, construction materials, specialty chemicals, containers & packaging, aluminum, iron & steel, agricultural chemicals, diversified forest, and timber. This subsector plays a major role in Indonesia's market due to the country's rich natural resources and the demand for these materials in various sectors such as infrastructure, manufacturing, and agriculture. Currently, this sub-sector appears to be on an upward trend, with a notable total market capitalization growth of approximately 94% over the last 365 days. However, a closer look at individual companies reveals that a larger number are showing negative changes (65) in market capitalization compared to those with positive changes (34). This indicates that the larger companies with positive changes are exerting a significant influence on the overall market capitalization, despite more companies experiencing declines. Notable companies in this subsector, based on market capitalization, include PT Amman Mineral Internasional Tbk, PT Chandra Asri Petrochemical Tbk, Barito Pacific Tbk, PT Merdeka Battery Materials Tbk, and PT Merdeka Copper Gold Tbk.

Key Figures

Basic Materials companies on IDX

105

Total Market Cap. (IDR, billion)

IDR 1,825,199.42B

15.37% of total market cap. on IDX
Range of P/E Value

-534 - 230

Average of 7.9 P/E
Sector CAGR

> 10%

Compound Annual Revenue Growth of 12.62%

Basic Materials Sector Performance

IDR 1,825.20T

Sector Market Cap. (IDR, trillion)
  1. Last 4 Quaters

  2. Prev 4 Quarters

Sector Composition

Sector Valuation

Historical valuation of companies in Basic Materials
More than 5% deviation of median from the last 3 years
Within 5% deviation of median of last 3 years
TTM: Trailing Twelve Months (TTM)
Metric202020212022Current (TTM)
Price/Equity11.2813.137.027.94Lower than average of last 3 years
Price/Book1.171.281.050.88Lower than average of last 3 years
Price/Sales0.831.090.830.89Within 5% deviation of average of last 3 years
Price/Cash Flow5.287.307.694.61Lower than average of last 3 years

Executive Summary

Sector Performance

1W

+2.9%

1Y

+102.6%

YTD

+8.7%

Trailing 12 Months

Overall +102.6%

−0.100.100.20

Positive

Neutral (Within <2.5%)

Negative

Sector Percentile

97%

35
55
75
0
100

This sector has a return that beats 97% of all sectors on the Indonesia Stock Exchange over the past 12 months.

Sector Dividend Yield

2.41%

Dividend-paying companies in this sector pay out a dividend yield of 2.41% on average over the past 12 months. This beats the average dividend yield of all companies on IDX, which is around 3.23%.

Sector Stabillity

60%

35
55
75
0
100

This sector is rather volatile, with a RSD (Relative Standard Deviation) of 26%. Companies on IDX have an average RSD of 12%. This gives the sector a score of 60%.

RSD (Relative Standard Deviation)
60%
The relative standard deviation, caluclated from the S.D of the sector's returns.
Max Drawdown
-35.23%
The maximum loss from a peak to a trough during a specific period (TTM).

This past month

Over the last month, stocks in the Basic Materials sector has remained flat, although notably Pelat Timah Nusantara Tbk has gained 134.96% in the last month.

Current quarter

This quarter, the sector has seen an average revenue growth of 12.62% compared to the same quarter last year.
When it comes to earnings, the sector has seen an average decline of -25.16% compared to the same quarter in 2023. Much of this growth is driven by the following companies:
BRMS.JK(+517.7%), MDKA.JK(+132.1%), CTBN.JK(+122.6%), IFSH.JK(+71.0%), PSAB.JK(+57.1%).

Last 12 Months

Companies in the Basic Materials sector have seen a +102.6% change in market cap over the last 12 months. This signifies a sector that is growing rapidly, with investors anticipating a sustained period of growth.

Most of the last 12 months in the Basic Materials sector has been positive with July (+25.4%), April (+19.0%) and August (+13.5%) being the best performing months.

Sector Valuation

Has the Basic Materials sector valuation in Indonesia changed over the past 12 months?

Price to Earnings Ratio

  • The Basic Materials sector is trading at a median PE ratio of 7.94x, which is lower than its 3-year historical average PE of -210.30x. This puts the sector in the overvalued category based on its historical valuation.
  • Companies in the Basic Materials have an extremely wide range of PE ratio, going between -534x to 230x.This makes it necessary to consider the outliers in the sector, and adjust for the respective market caps of each company to prevent any skewing of the data.
  • To add some perspective across the value disparity, among the top gainers in the last month, J RESOURCES ASIA PASIFIK Tbk commands a premium with a PE ratio of -10.80 while PT Chandra Asri Petrochemical Tbk is trading at a PE ratio of only -533.54.
  • When weighted by market cap, the Basic Materials sector is trading at a PE ratio of -210.30x as compared to the unweighted PE ratio of 7.94x. The unweighted sector median is a valuation that is largely on par with the overall IDX median of 8.22x.
  • The Basic Materials sector is trading at a PE ratio (7.94) that represents a slight discount to its historical average (10.48).

Sector Gainers

NIKL Logo
Pelat Timah Nusantara Tbk
NIKL.JK
Last Trading Day

IDR 625.00

1 Month

+134.96%

1 Year

+15.74%

P/E Ratio

-31.94

NICE Logo
PT Adhi Kartiko Pratama Tbk
NICE.JK
Last Trading Day

IDR 1,185.00

1 Month

+83.72%

TINS Logo
PT Timah Tbk.
TINS.JK
Last Trading Day

IDR 800.00

1 Month

+35.59%

1 Year

-19.60%

P/E Ratio

-31.02

PSAB Logo
J RESOURCES ASIA PASIFIK Tbk
PSAB.JK
Last Trading Day

IDR 202.00

1 Month

+29.49%

1 Year

+100.00%

P/E Ratio

-10.80

TPIA Logo
PT Chandra Asri Petrochemical Tbk
TPIA.JK
Last Trading Day

IDR 5,675.00

1 Month

+26.39%

1 Year

+150.00%

P/E Ratio

-533.54