AMRT Its Rights Issue Deadline Lapsed - So Why Did It Just Buy a Bank?

The Strongest Half-Year Profit Growth on Record, and a Deadline That's Now Four Months Gone

The last post on this company closed Q1 2022 with the fastest quarterly revenue growth since the pandemic recovery began, a segment-margin streak breaking in Java excluding Jabodetabek, a marginal pullback in Alfamart's total-grocery market share, free cash flow down 41.6% year-over-year, and - most consequentially - the up-to-5-billion-share rights issue's 12-month OJK effectiveness deadline lapsing on May 6, 2022 with zero mention in that filing. This is PT Sumber Alfaria Trijaya Tbk's unaudited interim consolidated financial statements for the six months ended June 30, 2022, authorized for issue by the Board of Directors on August 29, 2022. The headline: net revenue rose 13.92% to Rp47,886,751 million, from Rp42,035,856 million, and net income attributable to owners jumped 46.94% to Rp1,253,764 million, from Rp853,288 million - the strongest half-year profit growth this site has recorded for the company (see Key Financial Metrics).

But cash tells a rougher story than profit does this half. Total cash fell 63.32% to Rp1,199,369 million, from Rp3,269,642 million at December 2021, and free cash flow fell 66.22% even as net income jumped 46.9% - a sharper version of the profit-quality gap Q1 2022 already flagged. Part of the explanation only shows up in the investments footnote: on June 7, 2022, three weeks before quarter-end, the Company paid Rp500,000 million for a stake in PT Bank Aladin Syariah Tbk, a listed digital sharia bank - its largest single fintech-adjacent bet yet, on top of an already sprawling minority-stake portfolio (see Beyond the Usual). And the deadline this site has now tracked across five prior filings didn't get any closer to an answer: 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 that window - opened by the May 6, 2021 EGM approval - closed on May 6, 2022. This filing, authorized nearly four months after that date, still contains no reference to the mandate anywhere: not its status, not an extension, not a lapse, not a fresh EGM. Five consecutive prior filings covered its silence or its non-implementation; this is the sixth (see Beyond the Usual).

The Prescription

Alfamart's underlying retail engine keeps compounding - 13.9% revenue growth and 46.9% profit growth in a half, with all three geographic segments gaining margin year-over-year again after Q1's one-segment wobble reversed itself (see Segment Performance), and overhead's share of combined segment income falling to its lowest half-year reading in this site's coverage. Management should keep running that machine exactly as is: dense store growth, take-share in Modern Trade and MT Minimarket specifically, and overhead held flat while the network expands. What it should stop doing: spending Rp500 billion of a company that just posted a 63% cash decline on a minority stake in a digital bank, while a shareholder-approved capital-raise mechanism sits unused and unexplained past its own regulatory deadline. If Alfamart's capital-allocation instinct is to build a portfolio of adjacent-fintech option value (see Beyond the Usual), fine - but that's a decision for a company confident in its balance sheet, not one whose cash position just shrank by nearly two-thirds in six months. The rights issue mandate and the bank stake are not unrelated: one is an unused tool for raising capital, the other is capital going out the door into a business Alfamart doesn't control, and shareholders are owed a plain explanation connecting the two, not silence on one and a footnote on the other.

Key Financial Metrics

H1 2022 vs. H1 2021 (P&L and cash flow), June 2022 vs. December 2021 (balance sheet) - consolidated, unaudited

FX: IDR 14,848 = USD 1 (Bank Indonesia's period-end exchange rate as of June 30, 2022, per the filing's own foreign-currency policy note) - a 4.06% Rupiah depreciation from the Rp14,269 used at December 31, 2021, and a 3.48% depreciation from the Rp14,349 used at March 31, 2022.

Metric	H1 2022 (IDR)	H1 2022 (USD)	H1 2021 (IDR)	YoY
Net Revenue	Rp47,886,751M	~$3,225.5M	Rp42,035,856M	✅ +13.92%
Gross Profit	Rp9,928,108M	~$668.7M	Rp8,574,060M	✅ +15.79%
Income from Operations ("Operating Income")	Rp1,672,647M	~$112.7M	Rp1,193,910M	✅ +40.10%
Finance Cost	Rp90,902M	~$6.1M	Rp123,311M	✅ -26.28%
Income Before Final Tax and Corporate Income Tax	Rp1,597,001M	~$107.6M	Rp1,076,940M	✅ +48.29%
Income for the Period (total)	Rp1,279,679M	~$86.2M	Rp876,219M	✅ +46.05%
Net Income (attributable to owners)	Rp1,253,764M	~$84.4M	Rp853,288M	✅ +46.94%
EPS	Rp30.19	~$0.0020	Rp20.55	✅ +46.93%
EBITDA» (Operating Income + D&A)	Rp3,274,971M	~$220.6M	Rp2,724,300M	✅ +20.22%

Balance sheet metric	Jun 2022 (IDR)	Jun 2022 (USD)	Dec 2021 (IDR)	Change
Total Assets	Rp28,897,687M	~$1,946.2M	Rp27,493,748M	✅ +5.11%
Total Liabilities	Rp19,419,964M	~$1,307.8M	Rp18,503,950M	⚠️ +4.95%
Total Equity (attributable to owners)	Rp9,261,489M	~$623.7M	Rp8,790,746M	✅ +5.35%
Total Cash (incl. time deposits)	Rp1,199,369M	~$80.8M	Rp3,269,642M	🔴 -63.32%

"Adjusted EBITDA^»" is still not a metric Alfamart reports; the EBITDA line above is Income from Operations plus depreciation and amortization (Rp1,602,324M for H1 2022, per the segment note, versus Rp1,530,390M in H1 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 66.22% to +Rp477,756M, from +Rp1,414,420M in H1 2021, even as net income jumped 46.9% - a sharper repeat of the profit-quality gap this site flagged at Q1 2022 (which was itself a sharper repeat of FY2021's). Net cash from operating activities fell 35.96% (Rp1,400,941M from Rp2,187,943M) - customer cash receipts grew 16.24% but supplier payments grew faster (20.71%) and salary/wage payments grew 15.96% - while capex on fixed assets rose 19.36% (Rp923,185M from Rp773,523M). This is now three consecutive quarters where profit and cash generation have diverged, and this one is the widest gap yet. Total cash's 63.32% collapse is driven by more than the operating/capex gap alone: the Company also paid Rp788,563M in cash dividends and, separately, Rp500,000M for a new equity stake bought three weeks before quarter-end (see Beyond the Usual) - together explaining most of the roughly Rp2.07 trillion net cash outflow for the half.

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): 0.20x at June 2022, down from 0.21x at December 2021, matching the company's own presentation-deck figure. Total interest-bearing debt stood at approximately Rp1,867,932 million, up 0.94% from December 2021. 🔴 Net gearing tells a starker story than DER alone: it flipped from roughly -0.16x (a net cash position) at December 2021 to roughly +0.07x (net debt) at June 2022 - the first net-debt reading this site has recorded for the company in over two years of coverage, purely because cash fell so much faster than debt did. DER staying flat while net gearing flips sign is exactly why the two ratios need reading together, not DER alone.

Key Operational Metrics

• Store network: 19,567 consolidated stores (Alfamart, Alfamidi, Lawson-Alex-Fresh-Alfa Supermarket, and Dan+Dan) as of June 2022, up 4.02% from 18,810 at December 2021 - a net addition of 757 stores (646 Alfamart, 69 Alfamidi, 13 Lawson/Alex/Fresh/Alfa Supermarket, 29 Dan+Dan), split 26.9% Greater Jakarta, 40.3% Java, and 32.8% Outside Java per the company's own presentation - the outer-island share of the network keeps climbing, continuing the multi-year shift the presentation itself charts back to 2018 (29.5% Greater Jakarta then, versus 26.9% now).
• Permanent employees: not disclosed in this filing or the accompanying presentation, unlike Q1 2022, which reported 74,382. State "not available" rather than carrying forward a stale figure.
• Market share: per the presentation deck's own Nielsen-sourced YTD figures, Alfamart's share of total Indonesia grocery declined from 11.9% to 11.4% year-over-year - a second consecutive pullback after Q1 2022's first-ever decline (11.2% to 11.0%, on a different comparison window). Its share of Modern Trade specifically kept growing (23.8% to 24.7%), as did its share of the MT Minimarket channel (30.8% to 31.2%) - the pullback remains concentrated in the broader "total Indonesia grocery" category rather than the channel Alfamart actually competes in.

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 six months ended June 30, on this filing's own comparative basis for both years.

Segment	Revenue (H1 2022)	Revenue (H1 2021)	YoY	Segment Income (H1 2022)	Segment Income (H1 2021)	YoY	Margin (2022 vs 2021)
Jabodetabek	Rp13,501,714M	Rp12,070,309M	✅ +11.86%	Rp412,213M	Rp323,089M	✅ +27.59%	✅ 3.05% vs 2.68%
Java (excl. Jabodetabek)	Rp18,534,013M	Rp16,348,102M	✅ +13.37%	Rp1,230,366M	Rp1,002,204M	✅ +22.77%	✅ 6.64% vs 6.13%
Outside Java	Rp15,851,024M	Rp13,617,445M	✅ +16.41%	Rp972,410M	Rp819,380M	✅ +18.68%	✅ 6.13% vs 6.02%

All three segments gained margin year-over-year this half - including Java excluding Jabodetabek, whose margin loss at Q1 2022 (6.69% vs 6.78%) was the first break in the three-segment margin-gain streak this site had tracked since it began. By H1, that segment's margin is back above where it was a year earlier (6.64% vs 6.13%), meaning the Q1 dip didn't compound into a genuine reversal - it was a single quarter's wobble inside a half that still gained margin overall. Jabodetabek's 3.05% is its best standalone-half margin in this site's multi-year coverage of the company, continuing the region's recovery from years of erosion tracked since 2019.

Segments Compared

Combined segment income grew 21.93% year-over-year (Rp2,144,673M to Rp2,614,989M), while unallocated corporate overhead fell 0.89% (Rp950,763M to Rp942,342M) - the first time this site has recorded overhead actually shrinking in absolute terms year-over-year rather than merely growing slower than the business it supports. Overhead's share of combined segment income fell to 36.04%, from 44.33% a year earlier, easily the lowest half-year reading in this site's coverage and a materially bigger improvement than Q1 2022's gap (27.06% segment-income growth vs 17.62% overhead growth) - overhead discipline didn't just continue into H1, it accelerated.

Beyond the Usual

A shareholder mandate's regulatory deadline is now four months gone, 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), FY2021 ("has not been implemented in 2021 considering the current situation and condition in 2021," with no further detail), and Q1 2022 (silent, three weeks after the mandate's own 12-month OJK deadline had passed). 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 August 29, 2022, nearly four months after that deadline, and it contains no reference anywhere to the rights issue having lapsed, been extended, been formally cancelled, or been replaced by a fresh shareholder approval - the Company's own public-offering history note (covering the 2008 IPO and the 2012, 2014, and 2015 non-preemptive rights issues) simply doesn't mention it at all, as though the May 2021 approval never happened. 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 six 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 - and this quarter it did so while spending Rp500 billion of cash on an entirely separate equity stake (see below), making the silence on the capital-raise mechanism harder to read as mere administrative lag.

A Rp500 billion stake in a listed digital bank, on top of an already sprawling minority-stake portfolio

On June 7, 2022, the Company purchased 294,118,000 shares of PT Bank Aladin Syariah Tbk for Rp500,000 million, recorded at fair value. This single transaction is larger than every other fair-value equity stake in the investments footnote combined - a Rp14 million stake in online insurance marketplace PT Kita Indonesia Plus ("KIP"), a roughly $1 million (Rp14.8 billion) stake in customer-retention platform Tada Network Pte. Ltd., a $600,000 (Rp8.9 billion) stake in e-grocery startup Segari Singapore Pte. Ltd., a $1 million stake in beauty-reseller platform Raena R.U. Pte. Ltd., a roughly 2.91%-built position in payments company Digital Payments Holding Pte. Ltd. ("OY") accumulated since 2020, and a $500,000 convertible bond in Buku Pte. Ltd. Alfamart has spent years building a scattered portfolio of small, non-controlling stakes across adjacent fintech, e-commerce, and logistics plays; a Rp500 billion purchase of a minority stake in a publicly listed bank is a different order of magnitude and a different kind of bet - not a startup option, but a passive holding in a regulated financial institution the Company doesn't control. Made three weeks before a quarter that ended with total cash down 63.3% and free cash flow down 66.2% (see Key Financial Metrics), the timing and size of this purchase is a capital-allocation choice worth watching into subsequent quarters, independent of whether the stake itself turns out to be a good investment.

December's four in-progress construction projects are all complete - and exactly one new one has started

Every facility under construction at December 2021 - Cilacap (then 84.33% complete), Lombok (20.65%), Medan (46.67%), and Slawi (0.11%) - is gone from this quarter's construction-in-progress schedule, replaced by a single new project in Madiun, just 0.24% complete as of June 2022. The fixed-assets note doesn't itemize each project's completion date individually this time, but the clean handoff - four finished, one just begun, nothing left half-built in between - is the kind of detail that would flag a stalled expansion if it ever stopped moving this cleanly.

Related-party purchases from three affiliated distributors keep growing as a share of total purchases

Net purchases from PT Atri Distribusindo, PT Yamazaki Indonesia, and PT Alfindo LF Makmur totaled Rp407,912 million this half, now 1.03% of total net purchases, up from 0.87% a year earlier (Rp298,460 million) - continuing the direction flagged at Q1 2022 (1.00% vs 0.86%). Still a small share of a large company's total purchases, but the percentage has now grown in every period this site has tracked it.

Coverage Table

Metric	H1 2022	H1 2021	YoY	Why it matters
Net Revenue	Rp47,886,751M	Rp42,035,856M	✅ +13.9%	Strongest half-year revenue base this site has recorded for the company
Net Income (to owners)	Rp1,253,764M	Rp853,288M	✅ +46.9%	Strongest half-year profit growth in this site's AMRT coverage
Total cash	Rp1,199,369M	Rp3,269,642M (Dec 2021)	🔴 -63.3%	Sharpest half-year cash decline this site has recorded, partly a new Rp500B bank stake
Free cash flow	Rp477,756M	Rp1,414,420M	🔴 -66.2%	Third straight quarter of profit and cash diverging, the widest gap yet
Rights issue disclosure	Silent, ~4 months past its own OJK deadline	Silent, three weeks past the deadline	⚠️ unresolved	Sixth consecutive filing without an explanation

Target Valuation Range

Enterprise value ~Rp85.38 trillion (~$5.75B), implying 13.10x EV/EBITDA and a trailing P/E of ~36.0x - the stock's re-rating didn't just continue from Q1, it accelerated, with every multiple this site tracks now further above its already-elevated Q1 2022 level, on a price move that has outrun even this half's record earnings growth.

Alfamart's shares closed at Rp2,040 on June 30, 2022 - up 34.21% from Rp1,520 at March 2022 and up 63.20% from Rp1,250 a year earlier at June 2021, a new two-year (and site-coverage) closing high for a third consecutive quarter. No stock split has occurred since 2013, so no price adjustment is needed.

Market cap → enterprise value	Q2 2022
Share price (period-end)	Rp2,040
Shares outstanding	41,524,501,700
Market capitalization	Rp84.71 trillion (~$5.71B)
Plus: interest-bearing debt	Rp1.87 trillion
Less: cash and equivalents	Rp1.20 trillion
Enterprise value	Rp85.38 trillion (~$5.75B)

Peer-multiple sanity check	Q1 2022	Q2 2022	Change
Trailing P/E	~29.7x	~36.0x	⚠️ up sharply
EV/EBITDA	~9.98x	~13.10x	⚠️ up sharply
P/B	~6.68x	~9.15x	⚠️ up sharply

Trailing P/E (using trailing-twelve-month net income to owners of approximately Rp2,351,467 million: FY2021's Rp1,950,991 million, less already-published H1 2021's Rp853,288 million, plus this half's Rp1,253,764 million) keeps expanding, now on a 34% quarterly price rise against just 10.5% quarter-over-quarter TTM earnings growth (Rp2,127,409 million to Rp2,351,467 million). EV/EBITDA (against trailing-twelve-month EBITDA of approximately Rp6,518,671 million) and P/B (book value of approximately Rp9,261,489 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 now lapsed by nearly four months with zero explanation (see Beyond the Usual) leaves the Company's capital plans no clearer than at Q1, and this quarter added a second capital-allocation question mark - the Rp500 billion bank stake - that a forward model can't yet assume away in either direction. The share price moved within a Rp665-Rp2,040 range across the trailing two years to this quarter-end - a 206.8% peak-to-trough swing, nearly 80 percentage points wider than the Rp665-Rp1,520 range (128.6%) recorded just one quarter ago at Q1 2022, since this quarter's own close set yet another new high. A move this size, three quarters running, is no longer a single quarter's mood swing - it's a re-rating that has now outpaced two consecutive quarters of record earnings growth, which is precisely the setup this site flagged reversing once already at FY2021.

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