Innovation, Expansion, and Partnerships Drive Consistent Growth at Hartadinata Abadi

Investor Relations / Company Update / Investor News / Innovation, Expansion, and Partnerships Drive Consistent Growth at Hartadinata Abadi

05 Sep 2023

Innovation, Expansion, and Partnerships Drive Consistent Growth at Hartadinata Abadi.

In 2022, HRTA (PT Hartadinata Abadi Tbk) held a market share of 15.58% in the gold jewelry segment and 15.64% in 99.99% pure gold.
The Compound Annual Growth Rate (CAGR) for HRTA's gold sales in pure gold units grew by 11.84% over the past five years.
Innovation and an omni-channel ecosystem have also contributed to the company's growth.

Bandung, May 31, 2023 – PT Hartadinata Abadi Tbk (HRTA), a fully integrated manufacturer of gold jewelry and gold bars in Indonesia, has achieved consistent market share growth over the past five years. For gold sales, HRTA recorded a CAGR of 11.84% for the period 2017-2022, with a market share of 15.58% in 2022. Jewelry demand dominates 60% of the total gold demand in Indonesia each year. Meanwhile, in the 99.99% gold bars and jewelry segment, HRTA has achieved significant market share growth, rising from 0.23% in 2019 to 15.64% in 2022.

"In the past 5 years, we have introduced various innovations, not only in product innovation but also in technology and marketing innovation to reach a wider market, including creating an omni-channel ecosystem," explained Sandra Sunanto, CEO of PT Hartadinata Abadi, Tbk, during a Public Expose event held after the Annual General Meeting of Shareholders (AGMS) in 2023 on Wednesday, May 31, 2023.

One of the product innovations from HRTA is the BullionProtect® security feature applied to EmasKita products, as a pioneer in security innovation directly attached to gold bars. Additionally, HRTA has introduced EMASKU kilobar gold products with certificate sheets featuring 8 security features, including security paper materials to ensure product security based on testing results conducted by assayers.

To continue expanding its business, HRTA has also entered into various partnerships with other trusted financial institutions in Indonesia, such as Bank Negara Indonesia (BNI), Bank BJB Syariah, and Bank Syariah Indonesia (BSI). Furthermore, HRTA has created an omni-channel ecosystem to reach a broader market. This includes wholesale and retail stores for buying and selling gold and pawning, the company-owned stores that have reached 77 branches in Java and beyond, including Lampung, Batam, and South Sulawesi, as well as business alliances and retail partnerships with Matahari (22 stores for ACC store openings), Alfamart (1300+ stores for selling EmasKita 0.1g), and Ranch Market (5 pop-up stores for EmasKita and Kencana). In the near future, HRTA plans to open 11 new stores, bringing the total number of branches to 88. Not only relying on offline stores, they have also partnered with trusted e-commerce platforms such as Shopee, Tokopedia, Blibli, and Tiktok Shop. Additionally, they have their own Emaskita e-commerce platform through their website and mobile app.

"We have prepared several strategies for 2023, including repositioning and rebranding for the gold jewelry segment to align with the continuously evolving market. On the other hand, we will continue to expand our market reach by opening new gold and pawn stores, as well as maximizing sales through e-commerce platforms," added Sandra.

Meanwhile, HRTA recorded an increase in gold jewelry and gold bar production volume in 1Q23 by 23% YoY to 3.36 tons. This has driven the utilization rate to reach 44.75% in 1Q23, up from 36.39% in 1Q22. This increase is supported by export activities. HRTA also reported a sales increase of 53.84% in 1Q23 to IDR 2.12 trillion and year-to-date net profit of 37.44%, reaching nearly IDR 70 billion. Revenue growth is supported by an increase in the average selling price and sales volume of pure gold, which increased by 39.82% YoY to 2.16 tons in 1Q23 from 1.55 tons in 1Q22.

In terms of profitability, ROA stands at 6.60% and ROE at 15.59%, while DER is managed at 1.36x in 1Q23. During the Annual General Meeting of Shareholders (AGMS) in 2023, HRTA also announced a dividend distribution with a dividend distribution ratio of 21.80%, amounting to IDR 12 per share for the 2022 profit period.

HRTA has once again entered into a cooperation agreement for gold jewelry exports with one of the gold businesses in India, L P Commodities Private Limited (LPCPL). HRTA is targeting to gain additional sales of around 3 tons of 91.6% pure gold jewelry exports to LPCPL for a period of 3 months starting from May 2023 and can be extended. The commercial value of gold jewelry export transactions is estimated to contribute USD 177.82 million or equivalent to IDR 2.66 trillion to the Company's consolidated revenue. This cooperation is a continuation of export performance achievements that were previously carried out with Kundan Group and Bright Gold, demonstrating the trust of export partners in the quality of gold jewelry products produced by the Company.

About PT Hartadinata Abadi Tbk (HRTA)
As a manufacturer and provider of gold jewelry that has built trust among all stakeholders for over 34 years, HRTA is a major player in the gold jewelry industry in Indonesia. HRTA has an integrated business model, including 4 factories (manufacturing), a precious metal refining plant (refinery), wholesale sales, retail sales, as well as an e-commerce channel and the Emaskita.id application, and a gold pawnshop network. This integrated business model provides an advantage with a guaranteed market presence. Since its establishment, HRTA has established relationships with more than 900 gold stores throughout Indonesia. For more information, visit www.hartadinata.co.id or the official Instagram @hartadinata.abadi.

For further information, please contact:
Ong Deny
Corporate Secretary
PT Hartadinata Abadi Tbk
Phone: (022) 5402326 / 5403002
Email: [email protected] / [email protected]
www.hartadinataabadi.co.id

Innovation, Expansion, and Partnerships Drive Consistent Growth at Hartadinata Abadi.

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