PT Galva Technologies Tbk (GLVA) has planned to allocate IDR 80 billion of Capex for 2023 to strengthen the company’s recurring income through managed services business model.
GLVA was established in 1991, as a regional partner for economic products and supplying high-quality products, that include computers, printers, displays, and audio-video equipment. It serves as partners for brands such as Sony, Etere, Libec, Fujinon, TOA, Yamaha, Aiphone, Acer, Lenovo, BenQ, Philips, and MSI. Meanwhile, it offers products from professional audio-video systems, public announcements and communication equipment, professional audio, lighting, and display solutions, security systems, computers, projectors, printers, to accessories. The company provides expertise and engineering to customized solutions for challenges such as rapid technology changes.
The company’s shareholders are:
- PT Elsiscom Prima Karya 65.49%;
- PT Oki Widjaja 2.38%;
- Public 32.13%.
Strengthening its growth
The company will try to strengthen its recurring income through its Capex allocation. Galva would then try to maintain the growth and achieve its target.
Suwardi Ngaturi, Galva’s Document Solutions Business Unit Director, said the 2023 Capex would be 80% higher than in 2022 of IDR 25 billion.
“Of course, the amount of CAPEX that has been budgeted for next year can stimulate Galva’s steps to achieve better performance in 2023 than the previous year or at least be as successful as this year,” he said.
Galva targets a 30% sales growth in 2023 compared to 2022. With this optimistic target, it would raise the company’s net profit to double on an annual basis in 2022. This target is supported by the opportunity in industrial growth for communication information and services, which would suffice the opportunity.
The company is also supported by the Compound Annual Growth (CAGR) in the sector at 7.5% in 2020 until 2025, which reaches US$128 billion or equivalent to 9% of the Gross Domestic Product.
GLVA’s achievement stems from the organic & inorganic means of product expansion, and a new brand. The establishment of a new subsidiary that presents locally made products in information technology (IT) electronics called LIBERA, had been one of the reasons for its growth.
“The company’s development strategy is consistent with the nature of Galva’s business, which in the future will strengthen its business focus on the three main pillars of the business unit, namely IT Distribution, Business Solutions, and Document Solutions,” Galva President Director Oki Widjaja explained on December 8, 2022.
Galva’s performance grew positively in the first 9 months of 2022. The company earned a profit of IDR 51.59 billion per Q3, compared to last year’s IDR 23.20 billion or an increase of about 122%. Its sales per September 2022 reached IDR 1.73 trillion, compared to last year’s at IDR 1.12 trillion, or an increase of about 54.4%.
Risk in the IT sector
However, IT is an essential part of business operations that has significant risks that should be assessed, and identified. Its risks include hardware and software failure, human error, spam, viruses, and malicious attacks.
Indonesia recently is known for its weak cyber security management. Cyber attacks are very harmful as they could seriously damage the product, but also the business, and the company itself. This includes:
- brand and reputational damage;
- loss of confidential and sensitive data;
- loss of business continuity;
- fines if your business is found negligent.
According to the National Cyber and Encryption Agency (BSSN), until April 2022 alone, cyber-attacks in Indonesia reached a staggering 100 million cases, which were dominated mostly by ransomware and malware.