PT Acset Indonusa Tbk (ACST) plans to diversify its business into the mining construction sector.
As reported in the disclosure of information on the IDX website, Friday (15/3), ACST has conducted a feasibility study for the plan to add business activities, namely mining civil building construction, other mining and quarrying support activities, and telecommunications activities specifically for its own needs.
ACST originally had its main business in building construction, civil building construction, and supporting installations.
ACST management said there are several reasons why the company wants to diversify its business.
For the mining civil building construction sector, ACST sees that the industry is growing rapidly, thus requiring government and private sector support.
For the specialized telecommunications industry sector, ACST sees the development of the industry and its market needs to continue.
For the mining and quarrying support sector, the company can experience growth in this industry by continuing to implement innovation, sustainability, and good governance.
"However, the company must still pay attention that the development of this business means the company will have new competitors. To minimize this, Acset will start offering services to companies in the same group and customers/partners," wrote management in the disclosure of information.
With the addition of business in the mining construction sector, ACST's total assets are projected to increase by an average of 10.46% in 2024-2028 compared to without the addition.
The increase is projected to come from cash and cash equivalents, accounts receivable, customer advances, prepayments, and retention receivables to progress under construction.
"Total assets in the 2028 period are projected at IDR 1.9 trillion with the addition of KBLI (Indonesian Standard Industrial Classification), while without KBLI, it is estimated at IDR 17 trillion," said management.
In addition, the company's liabilities with the addition of KBLI are estimated to increase by an average of 11.81% over the same period. The rise came from trade payables, customer deposits, loans, and obligations under capital leases.
Management stated that liabilities in 2028 are projected to reach IDR 1.4 trillion, while without the addition of KBLI, it is estimated at IDR 1.2 trillion.
On the other hand, ACST's equity with the addition of KBLI is forecast to increase by an average of 6.28% during 2024-2028 compared to without the addition of KLBI. The increase is expected to come from retained earnings.
"Equity in 2028 is projected at IDR 509 billion, while without the addition of KBLI, it is projected at IDR 449 billion," said management.
ACST management explained that this business diversification also aims to develop business activities to adapt to the dynamics of the construction sector, especially in the mining sector. This is a response to the rapid development in the country's mining sector.
In addition, ACST Management also considers that the Company is part of the PT United Tractors Tbk (UNTR) group. Thus, ACST has access to a variety of promising potential mining construction projects, emphasizing its position as a reliable, highly qualified partner to meet the construction needs in the mining sector.
"The company's step in developing its business in construction activities in the mining sector is expected to be a promising milestone in the future for the company," explained the management.
Image source: Kontan / Doc. PT. Acset Indonusa Tbk.
Source: https://investasi.kontan.co.id/news/diversifikasi-bisnis-acset-indonusa-acst-bakal-garap-sektor-konstruksi-tambang?page=all
