RHB Indonesia - Lippo karawaci - Corporate day feedback - (Lippo Karawaci) Unknown Selasa, 24 Januari 2017




Good morning,

Lippo karawaci - Corporate day feedback

Last Thursday, we’ve brought Lippo Karawaci (LPKR IJ, Under Review) to our 2017 regional corporate day at Kuala Lumpur, a few key points as below:
¨ Management expect marketing sales of residential properties to pick up by 2H17, once the sensitivities of declaring assets related to the tax amnesty program are settled.
¨ 2016 marketing sales has largely underperformed its target due to sensitivities related tax amnesty that deter buyers from pulling their triggers, meanwhile, banks' mortgage rate in general has not dropped enough, in contrary to lower BI rate.

¨ Though not finalized, management targets revenue growth of 20% for 2017, marketing sales target should be around IDR3trn for 2017 (versus ~IDR3.5trn in 2016).
¨ The company’s launching strategy going into 2017 would be “affordable luxury”, or superblock, small sized high rise development, similar to its iconic Kemang village that is small built up size with higher ASP/sqm than its landed projects due to the amenities that came with these properties.
¨ The company highlighted its largest landbank in Makassar (compared to its competitors) will be a strategic benefit as the Makassar region has amongst the highest GDP growth rate in Indonesia at the moment.
¨ FY16 marketing sales is indicated to be above IDR1trn versus 3Q16 achievement of IDR753bn.
¨ Management remains optimistic of the stock due to its resilience earnings (supported by the growth from its health care and asset management and hotel businesses). Currently the counter is trading at 14x FY17 consensus P/E with consensus NAV/share of IDR756. (Research team)
Link to Daily report:  Indonesia Morning Cuppa - 240117

Media Highlights:

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Bank Tabungan Negara booked 36.71% net profits growth in 2016
Bank Tabungan Negara (BBTN IJ, BUY, TP: IDR2,420) booked net profits of IDR2.48trn in 2016, or increased by 36.71% YoY compared to the same period last year of IDR1.81trn. According to its Director, net profit growth in 2016 was underpinned by growth in fee based income as well as operational cost control. On top of that, higher net profit was also supported by loan growth which was higher than the management’s target. The bank recorded total outstanding loans of IDR150.22trn, or grew by 17.61% YoY compared to the same period last year IDR127.3trn. (Bisnis Indonesia)

Comment: Such FY16’s net profit figure is unaudited number and based on bank only. IDR2.48trn is inline with our numbers of IDR2.4trn as the bank obtained lower corporate tax rate due to it already fulfilled higher free float of 40% since mid-2016. We continue to like BTN on the back of its strong loan growth projection coming from lower mortgage segment, asset quality improvement and an attractive valuation at 0.95x P/BV multiple for 2017F with 14% ROAE. Indicative FY16’s result analyst meeting would be on February 6th, 2017. (Eka Savitri)

Ciputra aims ~17% YoY growth for FY17 marketing sales
For FY17 management of Ciputra Development (CTRA IJ, Under Review) targets 17% YoY growth for marketing sales to reach IDR8.4trn with capex allocation of ~IDR1.5trn. Meanwhile, the company booked total marketing sales of IDR7.18bn (-21.7% YoY) in FY16 or 77.3% achievement from the company’s full year target. (Company)

Comment: The company’s FY17 target marketing sales was 17% lower than our forecast while FY16 achievement was also 77% from our FY16 target. We will be reviewing our forecast. (Yualdo Tirtakencana Yudoprawiro)

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Best regards,

Helmy Kristanto
Director
Head of Indonesia Research
PT. RHB Securities Indonesia


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