PRAY Maintains Strong Fundamentals Despite Recent Stock Decline

Affiliated Transactions Strengthen Financial Structure

PT Famon Awal Bros Sedaya Tbk (PRAY) has demonstrated resilience in its fundamental performance despite experiencing a recent stock decline. According to BRI Danareksa Sekuritas analyst Abida Massi Armand, several affiliated transactions conducted by the company are viewed positively as they strengthen the financial structure and support long-term growth.

Key Transaction: Conversion of Receivables to Shares

One significant transaction highlighted by Armand is the conversion of Rp 2.35 billion in receivables owed to PT Fortuna Medika Jakarta (FMJ) into shares. This strategic move has resulted in PRAY increasing its ownership stake in FMJ to 99.99%. The transaction is seen as a positive development as it not only strengthens PRAY's financial position but also consolidates its control over FMJ.

Analyst's Perspective

Abida Massi Armand of BRI Danareksa Sekuritas emphasized that such affiliated transactions are constructive for PRAY's financial health and long-term prospects. The increased ownership in FMJ is expected to provide PRAY with greater control over its subsidiary, potentially leading to more effective management and strategic decision-making.

Market Context and Future Outlook

Despite the recent decline in PRAY's stock price, the company's fundamental strengths remain intact. The positive impact of affiliated transactions on PRAY's financial structure suggests that the company's long-term prospects remain favorable. Investors are advised to consider the company's robust fundamentals and growth potential when making investment decisions.