PGN's Stock Prices Continue To Skyrocket: Because Of Jokowi's Son Kaesang, And Ustaz Yusuf Mansur?

Children President Joko Widodo (Jokowi), Kaesang Hope. (Photo: Instagram @kaesangp)

JAKARTA - The share price of PT Perusahaan Gas Negara Tbk is in a strengthening trend. The soaring share price of the company coded PGAS is allegedly inseparable from the role of President Joko Widodo (Jokowi) 's sons, Kaesang Pangarep to Ustaz Yusuf Mansur.

At the opening of trading Wednesday, December 16, PGAS shares were able to gain almost 1 percent to the level of Rp1,800. At the close of trading yesterday, PGAS shares were at the level of Rp1,790.

For information, through the Twitter account @kaesangp, President Jokowi's youngest son also commented on the movement of the Jakarta Composite Index (IHSG) which again broke the 6,000 level on Monday, December 14.

Kaesang Pangarep favored the shares of PT Perusahaan Gas Negara Tbk. (PGAS) amidst the momentum of the JCI to rise to the level of 6,000. The recommendation with the nickname 'Sangmology' is ready to collide with the consensus of the analysts.

"Weleh Weleh," he tweeted as he uploaded a picture of the JCI movement until the end of the first session, Monday, December 14th.

Not only commenting on the JCI movement, the owner of Sang Pisang also answered a tweet from one of the netizens regarding shares that can be bought when the index is perched at 6,000.

Kaesang believes that the movement of the shares of Perusahaan Gas Negara (PGN) will be able to break the Rp2,100 level next year. The owner of the @sahamrakyat Instagram account also labels his recommendations as 'Sangmology'.

"If PGAS can reach 1,750, I think the journey to 2,100 will be smooth. How about @sahamrakyat? #SangMology," he wrote via his Twitter account, Monday, December 14 evening.

It turns out that Kaesang's interest in the stock market has not emerged recently. Kaesang's desire to invest in stocks was expressed on his twitter account @kaesangp on May 6, 2019. "IF YOU WANT TO LEARN TO INVESTING THE STOCK MARKET, WHERE YA !!! PLEASE INFONYA !!!" wrote Kaesang who posted on his personal twitter account page.

Ustaz Yusuf Mansur also recommended PGAS shares

The name Ustaz Yusuf Mansur or (UYM) has recently become increasingly popular as a reference for investors in choosing prospective stocks. This is because he often provides capital market investment education through his Instagram account. Its sizeable congregation base also keeps recommended shares flying.

Last weekend, UYM also recommended PGAS shares. He said that buying shares of state-owned enterprises (BUMN) which involved the lives of many people would pave the way for profit.

Photo: Instgram @yusufmansurnew

"Here. I have good intentions," he wrote on his Instagram account @yusufmansurnew, Friday, December 10.

Kaesang and UYM's recommendation triggered a movement in the PGAS share price. The subsidiary, PT Pertamina (Persero), parked in the green zone, strengthening 3.63 percent to a level of IDR 1,715 at the end of Monday's session, December 14.

In the last week, the rate of PGAS shares rose 18.28 percent. Domestic investors dominate the company's stock transactions by purchasing Rp2.9 trillion in a week.

PGAS performance

Based on the third quarter of 2020 financial report, PGN posted revenues of US $ 2.15 billion as of September 30, 2020. The realization was down 23.49 percent from US $ 2.81 billion in the same period last year.

In the same period, PGAS also posted a net profit of US $ 53.35 million. This achievement was down 58 percent compared to 129.10 million US dollars as of 30 September 2019.

PGN's management explained that the revenue recorded was around IDR 31.51 trillion in the third quarter of 2020. This value refers to the average middle exchange rate for the third quarter of 2020 of IDR 14,647 per United States dollar (US).

PGN said most of the revenue came from the operating performance of gas sales. Thus, the company recorded an operating profit of 315.49 million US dollars and an EBITDA of 601.91 million US dollars.

Director of Finance of Perusahaan Gas Negara Arie Nobelta Kaban said that the achievement of financial performance in the third quarter of 2020 was strongly influenced by economic conditions that had not yet recovered.

Arie said, the impact of the COVID-19 pandemic was still continuing, so it had not increased the demand for natural gas. In addition, world oil and gas prices have not yet risen. The rupiah exchange rate against the US dollar is also still volatile.

"The triple shock affects PGN's business, namely demand for natural gas, the upstream sector which depends on the market, especially oil and gas prices, and LNG prices," he said.

Furthermore, he said, the company's financial condition is currently in quite good condition. The position of cash and cash equivalents was US $ 1.19 billion as of September 30, 2020. According to her, this position was better than the position of US $ 1.04 billion as of December 31, 2019.

In addition, PGAS claims its ability to fulfill obligations is still good. The current ratio is 268 percent as of September 30, 2020 or higher than 197 percent as of December 31, 2019.

PGN's management said that the distribution business was affected by economic conditions. However, a decrease in income can be followed by a decrease in cost of revenue. In addition, the company is also making efficiency. Thus, the company's operating expenses decreased by 107.5 million US dollars.

PGN's management stated that it is trying its best to increase the company's revenue by the end of the year. Efficiency measures in terms of costs are still being taken so that financial performance is better.