The Covid-19 coronavirus pandemic has suddenly triggered a global health crisis, large numbers of human lives continues to be tragically lost until today. There is still deep uncertainty on how the Covid-19 vaccines can be realized to be immediately deployed and effectively used to defeat the disease. This pandemic has also tremendously challenged the global business community, damaging severely both in economic and social context. The impact of the restraints in social interaction and strict lockdown measures used to contain the pandemic outbreak, triggered a sudden collapse of the economic activity. Other than the few essential critical services and businesses, most businesses had to suspend activities whilst people were forced to stay home. It is inevitable that the number of business failures have drastically increased. Paradoxically there are also a number of businesses that have endured during this pandemic period.

One such case is within the food processing industry, namely in the frozen foods sector as well other downstream food processing business offering value-added products enhanced home cooking process up to Ready Meals.

These trends have been carefully been observed by the management of PT. Kurnia Foods Ceria Tbk. ("PT. KFC"). This company started from a small, family-run business, focusing in raising chickens to produce poultry and eggs. In its development over the last four decades PT. KFC has since expanded in terms of both their scale and market reach as well as through vertical integration and product differentiation into the processed poultry product lines. They are now able to offer a variety of frozen chicken meat and processed chicken products such as Chicken Nuggets, Chicken Meatballs, Chicken Strips, Chicken Wings and Chicken Loaf.

Presently PT. KFC owns 5 production plants strategically located around 4 of the largest cities in Indonesia. This is further supported by solid distributor and reseller network covering the entire span of Indonesia.

PT. KFC management team is currently lead by Mr. Tanuwijaya. Besides serving as the CEO, being the third-generation member of the Tanuwijaya family who founded the company he is also a major shareholder of the company. He is seen as a very capable leader and has been credited for the successful execution of highly complex and strategic initiatives of the company. Leading the company not only during the transition from second to third generation ownership, but also the further the transition from a private to a public company through IPO and indirectly as public company; increased transparency and credibility of PT. KFC management.

The company intends to further seek further avenue of growth, by advancing downstream and to expand its product lines from frozen Ready-to-Cook into frozen Ready-to-Eat products. It has been a very dominant trend emerging from the Covid-19 pandemic, as a solution to serve the customers during the recent social restriction. Ms. Sharon, as Head of Business Development for PT. KFC is currently focusing the company's business strategy into the new market. Together with the members of the development team, they have completed a thorough analysis of the opportunities and constraints and formulated the business plan to produce and enter the market to serve Ready-Meal products.

Mr. Tanuwijawa has requested Chief Financial Officer, Mr. Akmal to provide comprehensive analysis of PT.KFC financial condition. The information will be used to evaluate and assess the feasibility to advance with the proposed business expansion. In this regard, Mr. Akmal has directed his team to compile the necessary data on the company's finances.

PT. KFC Financial Reports are further present below :

PT KFC Statement of Profit or Loss for the years Ended 31 December 2020 (internal estimation) and 2019 2020 2019 Sales Rp.8,481,000,000,000 Rp.8,010,400,000,000 COGS 7,476,600,000,000 6,991,200,000,000 Gross Profit 1,004,400,000,000 1,019,200,000,000 SGA Expense 439,000,000,000 412,800,000,000 Operating income 565,400,000,000 606,400,000,000 Interest income (2.200.000.000) (1.400.000.000) Interest expense 92.400.000.000 70.000.000.000 Other income (11.000.000.000) 11.200.000.000 Total other(Income) expense 79,200,000,000 57,400,000,000 Income before income taxes 486,200,000,000 549,000,000,000 Taxes expense (benefit) 79,200,000,000 (56,400,000,000) Net Income 407,000,000,000 605,400,000,000PT. KFC. Statement of Financial Position 31 December 2020 (internal estimation) and 2019 2020 2019 ASSETS Current Assets Cash & Cash Equivalent Rp96,800,000,000 Rp54,000,000,000 Accounts Receivable 434,600,000,000 344,600,000,000 Inventories 821,600,000,000 702,600,000,000 Other Current Assets 80,800,000,000 36,400,000,000 Total Current Assets 1,433,800,000,000 1,137,600,000,000 Net PPE 1,456,400,000,000 1,233,800,000,000 Goodwill 2,168,800,000,000 1,947,800,000,000 Intangible Assets 1,407,400,000,000 1,351,800,000,000 Other Assets 153,000,000,000 150,800,000,000 Total Assets 6,619,400,000,000 5,821,800,000,000Average Industry data : Ratio Current Ratio Quick Ratio Inventory Turn Over Average Collection Period Total Assets Turn Over Debt Ratio Industry Norm 1 .47 0.6 1 1.3 28.16 0.51 0.62 Times Interest Earned 5.20 Gross Profit Margin 33% Operating Profit Margin 14.53% Net Profit Margin 10.13% Return On Assets 7.20% Return On Equity 24% P/E Ratio 22 M/B ratio 18.62LIABILITIES & S/H EQUITY Current Liabilities Current Debt 420,400,000,000 382,200,000,000 Account Payable 385,200,000,000 338,800,000,000 Other current liabilities 297,000,000,000 285,200,000,000 Total current Liabilities 1,102,600,000,000 1,006,200,000,000 Long Term Debt 1,966,000,000,000 1,592,400,000,000 Differed income taxes 471,200,000,000 421,400,000,000 Other Liabilities 234,400,000,000 239,600,000,000 TOTAL LIABILITIES 3,774,200,000,000 3,259,600,000,000 Share Holder Equity Common Stock 9,000,000,000 9,000,000,000 Capital in excess of par 875,600,000,000 877,400,000,000 Retained earnings 2,757,400,000,000 2,465,800,000,000 Acc. Other comprehensive (23,400,000,000) (3,000,000,000) gain/loss Treasury Stock (773,400,000,000) (787,000,000,000) Total Equity 2,845,200,000,000 2,562,200,000,000 TOTAL LIABILITIES & 6,619,400,000,000 5,821,800,000,000 EQUITY Number of shares of C/S 2,000,000,000 2,000,000,000 outstanding Market Price Per share 1,900 1,800Members of PT. KFC 's finance team is currently performing analysis of the expected returns of the company's share and further comparing against the figures obtained from the shares of other companies in the same business sector defined as the Pool of other stocks (as benchmark) Summary of the results obtained is presented in the following table: Possible Outcomes Probability KFC stock Return Pool of other (economic condition) stocks Very Poor 0.05 -10% 20% Poor 0.15 2 10 Average 0.60 14 8 Good 0.15 18 - 3 Excellent 0.05 25 - 4