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Danareksa Equity Snapshot - PTPP 12 Maret 2018
March 12, 2018 10:36

Pembangunan Perumahan(PTPP IJ)

Earnings up 42%yoy: in-line

PTPP booked 2017 earnings growth of 42.0%yoy to IDR1.5tn. The result is 102.2% of our target and 101.1% of the consensus - in-line. The strong earnings growth was supported by 30.6%yoy revenues growth and IDR438bn of other income. The order book in 2017 reached IDR89.0tn (+24.1%yoy; FY16: IDR71.7tn), supported by IDR48.4tn of carry over contracts. We have a BUY call on PTPP with a TP of IDR4,000.

Earnings grew 42%yoy; in-line. PTPP booked 2017 earnings of IDR1.5tn, up 42.0%yoy (FY16: IDR1.0tn). The result is in-line with our target and the consensus (102.2% of our target and 101.1% of the consensus). The strong earnings growth was supported by brisk revenues growth and other income. Other income reached IDR437.8bn (+309.5%yoy, FY16: IDR106.9bn).

Revenues grew 30.6%yoy. Revenues reached IDR21.5tn in 2017, up 30.6%yoy (FY16: IDR16.5tn). This figure is 94.6% of our target and 93.7% of consensus estimates. The strong revenues came on the back of the firm order book.

The order book reached IDR89tn in 2017. PTPP’s order book in 2017 reached ~IDR89.0tn, up 24.1%yoy (FY16: IDR71.7tn), supported by strong carry over contracts which reached IDR48.4tn. The new contracts booked in 2017 reached IDR41.0tn, up 24.6%yoy (FY16: IDR32.6tn). The company targets new contracts to reach IDR49.0tn in 2018, representing growth of ~20.0%yoy. New contracts booked as of Feb 18 stood at IDR5.2tn or 10.6% of the full year target.

Margins, debt, and cash flow. Margins were relatively flat, while the interest bearing debt increased slightly. The total interest bearing debt as of Dec 17 reached IDR8.9tn, higher than the previous year’s IDR6.8tn. However, the cash as of Dec 17 was also higher at IDR9.4tn, boosted by the IPO of one of PTPP’s subsidiaries, PP Presisi (PPRE), in 4Q17. PPRE managed to raise IDR1.0tn from the sale of a 35% stake to the public in the IPO.  Hence, the DER as of Dec 17 stood at 0.63x or similar to its level in the previous year. PTPP booked positive operating cash flow of IDR1.5tn, higher than IDR987bn in the previous year.

We have a BUY call on PTPP. We are awaiting the issuance of the full notes of the audited 2017 financial result.

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