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Market data provider LMAS eyes modest revenue growth
PT Limas Indonesia Makmur (LMAS), a company that provides financial data and real-time stock exchange information, is targeting moderate revenue growth this year amid increasingly tight competition in its specific industry
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T Limas Indonesia Makmur (LMAS), a company that provides financial data and real-time stock exchange information, is targeting moderate revenue growth this year amid increasingly tight competition in its specific industry.
The publicly listed company expects to grow its revenue by 10 percent this year as it sharpens its marketing strategies, including by promoting its products primarily to institutional investors.
“We will intensify our marketing strategies and increase our internet bandwidth to make our services more convenient for customers,” LMAS corporate secretary Baso Amir said after the company’s extraordinary general shareholders meeting on Monday.
The company offers a range of products targeted at professional individuals and institutions.
Its products include StockWatch, an application that allows users to observe companies’ stocks price movements, and StockTrade, a remote trading app to help investors manage their investments in real-time.
The company also owns e-bursa.com, a paid internet-based market information source that provides news about investments to its online users.
The company acknowledges it faces stiff competition ahead as other companies, such as PT RTI Infokom and Antara news agency, which owns market data platform IMQ21, have joined the industry.
Several securities companies even provide similar kinds of information for free.
“We have benefited from our trading system StockTrade. Investors who invest through securities companies can use our system directly to access the market,” Baso said.
Instead of allocating its capital expenditure to launch new services, the firm has opted to enhance its marketing strategies and focus on selling its mobile apps to customers.
It is also banking on the performance of its subsidiary PT Geotech System Indonesia, which offers hardware and software as well as information technology services for oil and gas companies.
“The software business is still growing despite the decline in the hardware business. Companies usually buy hardware once every four years, while for software, there are maintenance fees that form a recurring income,” Baso said.
LMAS has yet to announce its full-year 2017 financial results, but its official third quarter report last year showed that its net sales had declined by 15.26 percent to Rp 134.46 billion (US$9.41 million).
Its bottom line also slumped to Rp 2.94 billion between January and September 2017, from Rp 7.31 billion in the same period in 2016.
LMAS director Edwin Lim said the company’s extraordinary shareholders meeting on Monday approved the plan to change its status from a foreign direct investment company (PMA) to a domestic investment company (PMDN) and transfer its shares to Itek Bachtiar.
Itek Bachtiar owns approximately 51 percent of LMAS’ shares, which previously belonged to Cantaloupe Assets Limited, while the rest is owned by the public.
Itek was also the owner of Cantaloupe, which was previously registered in the British Virgin Islands.
“After the [government’s] tax amnesty program [which ended last March], the shares were transferred from Cantaloupe to Itek,” Edwin said.
Baso said the company was still in the process of changing it status with the Investment Coordinating Board (BKPM). The process is expected to be completed in one or two months.
LMAS’s shares closed at Rp 62 on Monday, unchanged from the previous close of trade.
