RHB Indonesia - Ciputra Development - Strong May presales (Ciputra Development) Unknown Kamis, 15 Juni 2017




Good morning,

Ciputra Development – Strong May presales

Ciputra Development (CTRA IJ, BUY, TP: IDR1,900) booked Jan - May 2017 presales of IDR2,635bn (-59% YoY) or equivalent to 31% from this year's target of IDR8,505bn. During the month of May presales went up significantly by 155% MoM to IDR1,017bn driven by the sales of landed houses & land lots. In terms of product mix, landed house contributed 58% while land lot 39% in May 2017. Majority of the property were sold in Greater Jakarta area while Sulawesi came in at second, shifting from Surabaya in 4M17.
We are also seeing a shift in payment methods where mortgage users are now increasing to 47% vs 39% in Feb 17, mostly driven by more competitive mortgage rate. We expect this trend may continue and mortgages would become the preferred payment method in the future, supporting demand.
We believe Ciputra’s outlook should be more positive going forward following last year's catalysts: lower interest environment, tax reduction on property, and the completion of tax amnesty.. We expect presales to pick up in 2H17. As such we have projected 18% CAGR growth for revenue and 19% CAGR growth for net income for FY16-19F. CTRA is one of our TOP PICKs in the sector, maintain BUY call with TP of IDR1,900 implying 40% discount to NAV. (Yualdo Tirtakencana)

Link to daily report: Indonesia Morning Cuppa 150617

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Best regards,

Helmy Kristanto
Director
Head of Indonesia Research
PT RHB Sekuritas Indonesia

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