PT Kobexindo Tractors Tbk ( KOBX ), an integrated heavy equipment provider, posted sales growth of 41% in 2022 to US$ 168.5 million, compared to sales in the previous year of US$ 119.3 million. This figure is a provisional figure and is still awaiting the results of the audit (unaudited). This growth was contributed by sales of mining and non-mining heavy equipment marketed by KOBX. The sales result is also KOBX's highest achievement in the last five years.
"This achievement is inseparable from our strategy to optimize sales of heavy equipment units, both mining and non-mining, which are in our business segment," said Martio, Deputy Main Director of Kobexindo Tractors in a press release received by Kontan, Monday (23/1). The high demand for KOBX heavy equipment cannot be separated from the high prices of mining commodities which started in 2021. In 2022, despite adjustments to commodity prices, the prevailing prices will still benefit mining owners to increase production quotas to meet demand for mining materials.
The improvement in the economy after the Covid-19 pandemic which led to easing of activities while still paying attention to health and safety procedures was also a positive catalyst for KOBX's performance growth. "This triggers the mining, industrial, logistics and construction business sectors which are our target markets," explained Martio. Throughout 2022, KOBX Management recorded several points that must be considered in order to sustain sustainable growth in 2023 and the coming years, especially those related to the supply of heavy equipment units.
These include the production capacity of heavy equipment manufacturers, the price of heavy equipment raw materials such as steel, limited fleets and increased logistics or transportation costs to meet demand spikes, levels of consumer demand, increases in benchmark interest rates, fluctuations in the exchange rate of the US dollar against the rupiah, and the threat of impact. global recession.
KOBX has taken anticipations such as an inventory strategy by projecting customer orders in the next few months, securing heavy equipment supply as has been done with Doosan and NHL Terex, Mercedes Benz, as well as a pricing strategy. KOBX is optimistic that business growth in 2023 will continue the growth momentum of previous years. This is supported by sales of superior product lines that are reliable and have a high level of efficiency.
"In addition, we are supported by after-sales service and the availability of spare parts at 13 points of the company's branch offices so that we can provide the best for our customers," said Martio. To support its growth strategy in 2023, KOBX has prepared a capex of US$ 4 million to support operations and rejuvenation of heavy equipment rental units. In addition, KOBX has prepared several new products to be introduced in 2023 to strengthen its product line, both mining and non-mining heavy equipment.
