|
Good morning,
Intiland
Development (DILD IJ, BUY, TP: IDR 675), Meeting Notes:
♦ This year the
company will launch two projects; Kebon Melati and Darmo Harapan, which was
delayed from its original schedule in 4Q16.
♦ The company formed a
joint-venture with GIC Singapore to manage South Quarter mixed-use complex.
The announcement was released on 3 April 2017.
♦ Intiland will have
60% in the JV and GIC 40%. The JV will develop South Quarter Phase 2 which
comprises of two condominium towers and expected to launch in 4Q17 or 1Q18
the latest.
♦ Management also
indicates there were inquiries for more than 10 ha of industrial lands that
is potential to be closed soon.
♦ 1Q17 marketing sales
has yet to come out, but management gave a hint it may be less than IDR300bn.
♦ This year, the
company targets marketing sales to reach 2.3trn (+41% YoY) with revenue to
reach IDR2.5trn (+10% YoY) - 2.7trn (+19% YoY).
♦ Capex is allocated
around IDR1trn – 1.5 trn that will be used to construct currently on-going
high rise projects such as Praxis tower 4, Spazio Tower, 1 Park Avenue tower
4, and Regatta Phase 2.
♦ Currently the stock
is trading at 12.3x FY17F P/E. We have yet to make adjustments to our
forecasts. Maintain BUY with TP IDR675 implying 50% discount to RNAV.
Cancellation of Property Progressive Tax Plan:
Regarding
the regulation about progressive tax, the Government has said that they will
not implement progressive tax for unoccupied property due to the weakness in
the sector. The regulation will be reconsidered and there are currently no
immediate decisions. The Ministry of Agraria and Spatial Planning said that
the notion of progressive tax must be appropriate with the economic
condition, and it will be discussed with other ministries.
We
view this as positive news for property sector because we see the progressive
tax to be a burden for property owners and buyers. We understand that the
Government wishes to increase their tax revenue through property sector,
however we have not seen any clear direction by the Government regarding the
planned progressive tax. We also view that the plan for progressive tax
overlaps current policies such as LTV and final sales tax for property.
Therefore, the cancellation of this plan brings relief to the property
sector. (Yualdo Tirtakencana)
Link
to Daily report: Indonesia Morning Cuppa 100417
|
|
|
|
Company Update:
|
|
Adhi Karya booked IDR3.7 in new contracts
in 1Q17
Adhi Karya (ADHI IJ, NEUTRAL, TP: IDR2,100)
obtained IDR3.7trn (+59.6% YoY) new contracts in 1Q17, accounted for 21.1% to
our FY17F estimate. Based on market segmentation, new contract realization
consists of Government (25.2%), SOEs (41.6%) and Private (33.2%). Meanwhile
based on type of work, new contract consists of Buildings (71.7%), Road and
Bridges (16.8%), and Other infrastructures (11.5%). Maintain NEUTRAL on the
stock. (Dony Gunawan)
|
|
Media Highlights:
|
|
Corporate
XL Axiata will undergo refinancing
Modernland to issue USD240mn bond
Subsidiary of Mitra Pinasthika received
IDR700bn loan
Delta Dunia targets 20% revenue growth
Government capital spending is still lower
than last year
Official Reserve Assets Increased to
US$121.8 Billion at the end of March 2017
Bank Indonesia implements averaging reserve
requirement in June 2017
Loan growth in 1Q17 reaches 9%
|
|
Our
Recent Publication:
|
|
Corporate News Flash: IPO Plan For F&B
Subsidiary, MAP Boga?
Link to report: Mitra Adiperkasa : IPO Plan For F&B Subsidiary, MAP Boga?
|
|
Indonesia Strategy: Exuberance Over
Positives Ahead
Link to report: Indonesia Strategy: Exuberance Over Positives Ahead
|
|
Sector Update: Coal Mining - Monetising
Australian Coal Supply Disruption
Link to report: Monetising Australian Coal Supply Disruption
|
|
Economics Update: Harvest Season Brings
Some Relief In March Food Prices
Link to report: Harvest Season Brings Some Relief In March Food Prices
|
|
Results Review: Harum Energy – FY17
Earnings To Spike
Link to report: Harum Energy : FY17 Earnings To Spike
|
|
Sector Update: Regional Plantation – Time
To Lock In Profits
Link to report: Regional Plantation: Time To Lock In Profits
|
|
Company Update: Astra Agro Lestari –
Downtrend In CPO Prices Push Share Prices Down
|
|
Company Update: PP London Sumatra Indonesia
– Downtrend In CPO Prices Push Share Prices Down
|
|
Results Review: Summarecon Agung – Weak Performance
May Persist
Link to report: Summarecon Agung : Weak Performance May Persist
|
|
Indonesia Economic Outlook: Stronger Growth
As Exports & Government Spending Recover
Link to report: Stronger
Growth As Exports & Government Spending Recover
|
Best regards,
Helmy Kristanto
Director
Head of Indonesia Research
PT. RHB Securities Indonesia
Disclaimer: This message is intended only for the use of the individual or entity to whom it is addressed and may contain information that is confidential and privileged. If you, the reader of this message, are not the intended recipient, you should not disseminate, distribute or copy this communication. If you have received this communication by mistake, please notify us immediately by return email and delete the original message. This message is transmitted on the condition that the recipient accepts the inherent risks in electronic data transmission and agrees to release RHB group and RHB Securities from any claim which the recipient may have as a result of any unauthorized duplication, reading or interference with the contents herein. The contents herein are made in the personal capacity of the above-named author and nothing herein shall be construed as professional advice or opinion rendered by RHB group and RHB Securities or on its behalf.
