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RHB Indonesia - Intiland Development - Meeting Notes Unknown Rabu, 25 Oktober 2017




Good morning,

Intiland Development – Meeting Notes

We met with Intiland’s (DILD IJ, Neutral , TP: IDR 400) management to get an idea for the company’s direction towards 2018 following the phenomenal marketing sales achievement of IDR3trn in 9M17, which was 183%/131% from our/company’s FY17 target. Unfortunately, no detailed guidance were able to be given as managements’ internal discussions regarding FY18 will only start in mid-November.


¨ Although management seems positive towards the property sector in 2018, inflation-based growth was mentioned as the temporary guidance whilst waiting for the official Board meeting results. Regarding product pipeline for 2018, management was able to mention a few projects such as South Quarter Phase 2 (2 towers) with target proceeds estimated around IDR1.6trn, and residential project from Darmo Harapan with estimated proceeds of around IDR220bn. Based on our conversation, management hinted that more high rise products are coming in 2018.
¨ When asked about H-Island, management also mentioned that there are no activities about the project, no marketing sales have been made for the island, and no contractors have been chosen to build the project because the company will follow the Government’s final decision regarding the overall reclamation project.
¨ Current pre-sales achievement has surpassed our recently lowered marketing sales forecast because in 1H17 the company only achieved IDR1.1trn and we did not account for the surprisingly successful sales of Kebon Melati Promenade 57 Phase 1. With only 2 months left, we think it is best to focus for FY18 and we will adjust our assumptions to reflect this year’s marketing sales. Currently, the stock is trading at 14.9x FY17F P/E and 58% discount to NAV. We maintain our Neutral call for now. (Yualdo Tirtakencana)

Link to daily report: Indonesia Morning Cuppa 251017

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Best regards,

Andrey Wijaya
Senior Vice President
Research Analyst – Auto, Consumer, Cement
PT RHB Sekuritas Indonesia


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