Pefindo Has Assigned The Rating Of PT Transkon Jaya Tbk (TRJA) At idBBB. The Outlook For The Corporate Rating Is “Stable”.

Balikpapan, September 22 2022, PT Transkon Jaya Tbk received an “idBBB” rating from PT Pemeringkat Efek Indonesia (Pefindo). The outlook for the corporate rating is stable. This rating reflects PT Transkon Jaya Tbk’s profile as a good company with strong profit margin and strong cash flow protection.

PT Transkon Jaya Tbk proved that although the company is a vehicle rental service provider, that relies on contracts obtained from clients, the company is considered financially strong and has adequate ability to meet long-term financial commitments.

The independent agency PT Pemeringkat Efek Indonesia (Pefindo) itself revealed that there are three key company main strengths used in the rational assessment.

Firstly PT Transkon Jaya Tbk is considered to have a good fleet profile in the car rental industry, especially in the mining and smelter construction sector, including several types and brands of light vehicles which are modified to meet the safety standards and requirements for operating in mining locations, this market segment and fleet profile is one of the reasons the company’s business will continue to grow because it provides excellent service to customers and increases the level of customer satisfaction.

Secondly, a strong profit margin one of the company’s key strengths, as shown by the gross profit margin (GMP) and EBITDA margin achieved in the last three years (2019-2021) at 44.2% and 54.7%, respectively, PT Transkon Jaya Tbk’s ability to maintain these margins is due to the company’s ability to maintain competitive rental prices along with excellent vehicle quality, high maintenance standards, and a high level of support service to ensure customer satisfaction.

Thirdly, PT Transkon Jaya Tbk’s has strong cash flow, the cash flow projection remains strong in the rating category as the company is considered capable of covering the company’s long-term debt.