AMRT Q1 2022: Did the Rights Issue Authorization Just Quietly Expire?

The Fastest Growth Since the Recovery Began, and a Deadline Nobody Mentions

The last post on this company closed FY2021 with record full-year profit growth, all three geographic segments gaining margin for the first time, and a year-long silence on the up-to-5-billion-share rights issue finally broken - only to reveal the mandate had simply gone unused, with no explanation given beyond "considering the current situation and condition." This is PT Sumber Alfaria Trijaya Tbk's unaudited interim consolidated financial statements for the three months ended March 31, 2022, authorized for issue by the Board of Directors on May 27, 2022. The headline: net revenue rose 19.07% to Rp22,908,620 million, from Rp19,239,177 million, and net income attributable to owners jumped 35.33% to Rp675,806 million, from Rp499,388 million - the fastest quarterly revenue growth this site has recorded for the company outside the immediate pandemic-reopening quarters (see Key Financial Metrics).

But the more consequential fact in this filing isn't in the P&L either. Indonesia's OJK gives a public company 12 months from shareholder approval of a rights issue to obtain the regulator's declaration of effectiveness (POJK 32/2015) - and shareholders approved this company's up-to-5-billion-share non-preemptive rights issue with pre-emptive rights (HMETD) at the May 6, 2021 Extraordinary General Meeting. That 12-month window closed on May 6, 2022. This filing was authorized for issue on May 27, 2022 - three weeks after that deadline passed - and it still contains no mention of the rights issue at all: not its status, not an extension, not a lapse, not a fresh EGM to re-approve it. Four consecutive prior filings covered its silence or its non-implementation; this is the fifth, and the first one written after the shareholder mandate itself would, by regulation, appear to have simply expired (see Beyond the Usual).

The Prescription

Alfamart's core economics are compounding faster than at any point in this site's coverage - 19% revenue growth and 35% profit growth in a single quarter is a real acceleration, not a base-effect illusion, and management should keep leaning into whatever combination of store-network density, take-share-in-a-slowing-channel, and overhead discipline is producing it (see Segments Compared). What it should stop doing: leaving a shareholder-approved capital-raise to lapse in total silence. A rights issue mandate with a hard regulatory deadline just ran out the clock without so much as a sentence in the filing that followed - not a "we let it lapse," not a "we're seeking re-approval," nothing. Whatever the Company decided about its technology-investment plans, shareholders who voted for this mandate a year ago are owed a plain answer about what happened to it, and five consecutive filings of silence or non-answer is no longer a disclosure lag - it's a pattern.

Key Financial Metrics

Q1 2022 vs. Q1 2021 (P&L and cash flow), March 2022 vs. December 2021 (balance sheet) - consolidated, unaudited

FX: IDR 14,349 = USD 1 (Bank Indonesia's period-end exchange rate as of March 31, 2022, per the filing's own foreign-currency policy note) - a 0.56% Rupiah depreciation from the Rp14,269 used at December 31, 2021.

Metric	Q1 2022 (IDR)	Q1 2022 (USD)	Q1 2021 (IDR)	YoY
Net Revenue	Rp22,908,620M	~$1,596.5M	Rp19,239,177M	✅ +19.07%
Gross Profit	Rp4,923,284M	~$343.1M	Rp4,201,736M	✅ +17.17%
Income from Operations ("Operating Income")	Rp893,194M	~$62.2M	Rp673,019M	✅ +32.71%
Finance Cost	Rp46,480M	~$3.2M	Rp70,800M	✅ -34.35%
Income Before Final Tax and Corporate Income Tax	Rp855,728M	~$59.6M	Rp622,100M	✅ +37.55%
Income for the Period (total)	Rp688,048M	~$48.0M	Rp506,951M	✅ +35.72%
Net Income (attributable to owners)	Rp675,806M	~$47.1M	Rp499,388M	✅ +35.33%
EPS	Rp16.27	~$0.0011	Rp12.03	✅ +35.25%
EBITDA^» (Operating Income + D&A)	Rp1,685,789M	~$117.5M	Rp1,433,440M	✅ +17.60%

Balance sheet metric	Mar 2022 (IDR)	Mar 2022 (USD)	Dec 2021 (IDR)	Change
Total Assets	Rp31,635,438M	~$2,204.7M	Rp27,493,748M	✅ +15.06%
Total Liabilities	Rp21,975,717M	~$1,531.5M	Rp18,503,950M	⚠️ +18.76%
Total Equity (attributable to owners)	Rp9,448,427M	~$658.5M	Rp8,790,746M	✅ +7.48%
Total Cash (incl. time deposits)	Rp2,855,062M	~$199.0M	Rp3,269,642M	⚠️ -12.68%

"Adjusted EBITDA^»" is still not a metric Alfamart reports; the EBITDA line above is Income from Operations plus depreciation and amortization (Rp792,595M for Q1 2022, per the segment note, versus Rp760,421M in Q1 2021).

Free cash flow^» (operating cash flow minus capex - "acquisition of fixed assets" only, both from the filed cash flow statement, on the same basis as prior posts) fell 41.56% to +Rp309,924M, from +Rp530,358M in Q1 2021, even as net income jumped 35.3% - a repeat of the profit-quality gap this site flagged at FY2021, and a sharper one this time. Net cash from operating activities fell 17.09% (Rp740,880M from Rp893,635M) despite the profit growth, while capex on fixed assets rose 18.64% (Rp430,956M from Rp363,277M) as the Company kept expanding its store and warehouse network. ⚠️ A quarter where profit and cash generation move in opposite directions this sharply is worth watching into Q2.

Debt-to-Equity Ratio (DER)^» (interest-bearing debt - short and long-term bank loans and consumer financing payables, excluding the right-of-use lease liability, on the same basis as prior posts; no bonds remain outstanding): 0.19x at March 2022, down from 0.21x at December 2021, matching the company's own presentation-deck and financial-statement figure exactly. Total interest-bearing debt stood at approximately Rp1,780,682 million, down 3.78% quarter-on-quarter. Net gearing eased to roughly -0.11x (net cash position) at March 2022, from -0.16x at December 2021, as total cash fell 12.68% quarter-on-quarter (the seasonal post-holiday cash drawdown) while debt fell only marginally - the Company's net cash cushion is real but thinner than three months ago.

Key Operational Metrics

Permanent employees: 74,382 as of March 2022, up 3.07% quarter-on-quarter from 72,163 at December 2021 - and this filing's own comparative column restates December 2021 at the same 72,163 figure this site already reported, with no discrepancy this quarter, unlike the unexplained restatements flagged at 9M 2021 and FY2021.
Store network: 19,194 consolidated stores (Alfamart, Alfamidi, Lawson, and Dan+Dan) as of March 2022, up 2.04% from 18,810 at December 2021 - a net addition of 384 stores (317 Alfamart, 50 Alfamidi/Lawson, 17 Dan+Dan), split 27.18% Greater Jakarta, 40.94% Java, and 31.88% Outside Java per the company's own presentation.
Market share: per the presentation deck's own Nielsen-sourced figures, Alfamart's share of total Indonesia grocery declined marginally from 11.2% to 11.0% year-over-year - the first share pullback this site has recorded for the company, breaking the take-share pattern flagged every quarter since H1 2021. Its share of Modern Trade specifically still grew (23.3% to 24.7%), as did its share of the MT Minimarket channel (30.2% to 31.0%) - so the pullback is concentrated in the broader, harder-to-measure "total Indonesia grocery" category rather than the channel Alfamart actually competes in directly.

Segment Performance

Alfamart reports the same three geographic segments as every prior post - Jabodetabek (greater Jakarta), Java excluding Jabodetabek, and Outside Java. Figures below use each segment's external revenue, for the three months ended March 31, on this filing's own comparative basis for both years.

Segment	Revenue (Q1 2022)	Revenue (Q1 2021)	YoY	Segment Income (Q1 2022)	Segment Income (Q1 2021)	YoY	Margin (2022 vs 2021)
Jabodetabek	Rp6,670,197M	Rp6,218,341M	✅ +7.27%	Rp240,564M	Rp184,453M	✅ +30.43%	✅ 3.61% vs 2.97%
Java (excl. Jabodetabek)	Rp8,773,527M	Rp6,823,329M	✅ +28.58%	Rp587,185M	Rp462,902M	✅ +26.85%	⚠️ 6.69% vs 6.78%
Outside Java	Rp7,464,896M	Rp6,197,507M	✅ +20.45%	Rp538,906M	Rp428,214M	✅ +25.85%	✅ 7.22% vs 6.91%

Jabodetabek and Outside Java both extended the margin-gain streak FY2021 confirmed across a full year - Jabodetabek's 3.61% is its best standalone-quarter margin in this site's multi-year coverage of the company. Java excluding Jabodetabek is the one break in the pattern: its margin slipped to 6.69% from 6.78% a year earlier, even as its revenue grew fastest of the three segments (28.58%) - the first year-over-year margin loss this site has recorded for that segment since the three-segment recovery began. It remains the highest-margin segment of the three, but the direction reversed for the first time in over a year of gains.

Segments Compared

Combined segment income grew 27.06% year-over-year (Rp1,075,569M to Rp1,366,655M), while unallocated corporate overhead grew a slower 17.62% (Rp402,550M to Rp473,461M) - overhead's share of combined segment income fell to 34.64%, from 37.43% a year earlier, a new standalone-Q1 low in this site's coverage and a continuation of the cost-discipline pattern that carried all of FY2021. The gap between segment-income growth (27.06%) and overhead growth (17.62%) is narrower than FY2021's full-year gap (36.07% vs 4.86%) - overhead is still growing slower than the business it supports, just not by as wide a margin as the prior full year, worth watching as a possible early sign of overhead creeping back up alongside the network's expansion.

Beyond the Usual

A shareholder mandate's own regulatory deadline passed, and the filing still says nothing

Shareholders approved the up-to-5-billion-share Capital Increase with Pre-emptive Rights (HMETD) at the May 6, 2021 Extraordinary General Meeting - a mandate this site has now tracked through H1 2021 (undisclosed), 9M 2021 (undisclosed), and FY2021 ("has not been implemented in 2021 considering the current situation and condition in 2021," with no further detail). Under Indonesia's OJK Regulation No. 32/POJK.04/2015, a public company has 12 months from the date of shareholder approval to obtain the regulator's declaration of effectiveness for a rights issue - meaning this mandate's regulatory window closed on May 6, 2022. This filing was authorized for issue by the Board of Directors on May 27, 2022, three weeks after that deadline, and it contains no reference anywhere to the rights issue having lapsed, been extended, been formally cancelled, or being replaced by a fresh shareholder approval. The issued share count remains unchanged at 41,524,501,700, the same figure disclosed at every quarter since the May 2021 approval. A mandate this site has now covered across five consecutive quarterly filings appears to have simply run out the clock with the Company never once explaining, in its own words, what became of it.

Two separate positive trends this site has tracked for over a year both reversed in this filing. Java excluding Jabodetabek's segment margin fell year-over-year for the first time since the three-segment recovery began (6.69% from 6.78%, see Segment Performance), even as FY2021 had just confirmed all three segments gaining margin together for a full year. Separately, the company's own presentation discloses Alfamart's share of total Indonesia grocery slipping from 11.2% to 11.0% - the first share pullback this site has recorded, breaking the take-share pattern flagged every quarter since H1 2021. Neither reversal is large on its own, and Alfamart's share of the Modern Trade and MT Minimarket channels it actually competes in kept growing regardless (see Key Operational Metrics) - but two multi-quarter trends breaking in the same filing, in the same quarter free cash flow also fell sharply (see Key Financial Metrics), is a combination worth tracking into Q2 rather than dismissing as noise.

A Philippines royalty stream is quietly outgrowing the segment it sits in

The Company holds a 35% equity-method stake in Alfamart Trading Philippines Inc. ("ATP"), built through a series of capital injections via Singapore holding vehicle Alfamart Retail Asia Pte. Ltd. back in 2020. This quarter's related-party note shows royalty income from ATP growing to Rp7,639 million, up 83.5% from Rp4,163 million a year earlier - a small absolute number, but a growth rate well ahead of the core Indonesian business, and the first time this site has seen the actual scale of that cross-border royalty stream broken out rather than just the historical fact of the stake's existence.

Net purchases from three related-party suppliers - PT Atri Distribusindo, PT Yamazaki Indonesia, and PT Alfindo LF Makmur - totaled Rp212,898 million this quarter, now 1.00% of total net purchases, up from 0.86% a year earlier (Rp145,549 million). All three are disclosed as "other related parties" rather than subsidiaries, meaning a small but growing slice of Alfamart's cost of goods flows through affiliated entities rather than arm's-length suppliers - not unusual for a group this size, but the percentage is moving in one direction.

The construction-in-progress list turned over completely in one quarter

December 2021's four in-progress facilities (Cilacap, Lombok, Medan, Slawi) are down to one (Lombok, 49.9% complete) as of March 2022 - Cilacap and Medan both completed in January 2022, per the fixed-assets note, and Slawi appears to have completed or been reclassified without a specific line in this quarter's disclosure. A clean, fully-explained turnover of the capex pipeline, worth noting only because it's the kind of detail that would flag a stalled project if it ever stopped moving.

Coverage Table

Metric	Q1 2022	Q1 2021	YoY	Why it matters
Net Revenue	Rp22,908,620M	Rp19,239,177M	✅ +19.1%	Fastest quarterly revenue growth in this site's AMRT coverage outside the pandemic-reopening quarters
Net Income (to owners)	Rp675,806M	Rp499,388M	✅ +35.3%	Continues the acceleration confirmed through all of FY2021
Free cash flow	Rp309,924M	Rp530,358M	⚠️ -41.6%	Profit and cash generation diverged sharply, again
Rights issue disclosure	Silent, past its own 12-month OJK deadline	"Not implemented in 2021"	⚠️ unresolved	Five consecutive filings, the first written after the mandate's own regulatory window closed
Alfamart share of total Indonesia grocery	11.0%	11.2%	⚠️ -0.2pp	First share pullback in over a year of gains, though channel-specific share kept growing

Target Valuation Range

Enterprise value ~Rp62.04 trillion (~$4.32B), implying 9.98x EV/EBITDA and a trailing P/E of ~29.7x - the stock re-rated upward on every multiple this site tracks in a single quarter, reversing the "cheaper despite record earnings" story this site flagged at FY2021 almost immediately - the price moved faster than the fundamentals, not the other way around.

Alfamart's shares closed at Rp1,520 on March 31, 2022 - up 25.10% from Rp1,215 at December 2021 and up 68.89% from Rp900 a year earlier at March 2021, a new two-year (and site-coverage) closing high. No stock split has occurred since 2013, so no price adjustment is needed.

Market cap → enterprise value	Q1 2022
Share price (period-end)	Rp1,520
Shares outstanding	41,524,501,700
Market capitalization	Rp63.12 trillion (~$4.40B)
Plus: interest-bearing debt	Rp1.78 trillion
Less: cash and equivalents	Rp2.86 trillion
Enterprise value	Rp62.04 trillion (~$4.32B)

Peer-multiple sanity check	FY2021	Q1 2022	Change
Trailing P/E	~25.9x	~29.7x	⚠️ up
EV/EBITDA	~8.22x	~9.98x	⚠️ up
P/B	~5.74x	~6.68x	⚠️ up

Trailing P/E (using trailing-twelve-month net income to owners of approximately Rp2,127,409 million: FY2021's Rp1,950,991 million, less already-published Q1 2021's Rp499,388 million, plus this quarter's Rp675,806 million) expanded again after FY2021's brief compression, on a 25% price rise against roughly 9% TTM earnings growth. EV/EBITDA (against trailing-twelve-month EBITDA of approximately Rp6,220,151 million) and P/B (book value of approximately Rp9,448,427 million equity attributable to owners ÷ 41.52 billion shares) both rose the same way.

No listed domestic peer still exists for a direct minimarket-format comparison - Indomaret remains privately held under the Salim Group. A full DCF still isn't included here: the rights issue's regulatory deadline having apparently lapsed unremarked (see Beyond the Usual) leaves the Company's actual capital plans less certain than they were even at FY2021, when "not implemented" at least read as a closed chapter - a forward model still can't assume away this uncertainty in either direction. The share price moved within a Rp665-Rp1,520 range across the trailing two years to this quarter-end - a wider window than the Rp665-Rp1,380 range recorded at FY2021, since this quarter's own close set the new high - a 128.6% peak-to-trough swing, the widest this site has recorded for the company, and one large enough on its own to warrant this dedicated read rather than folding the move into the valuation section alone.

PT Sumber Alfaria Trijaya Tbk's unaudited interim consolidated financial statements as of March 31, 2022 and for the three-month period then ended; the Company's corresponding investor presentation as of March 31, 2022.