Riset, Rabu 2 Mei 2013

BEST IJ / BEST.JK | OUTPERFORM - Maintained | Rp1,000.00 - Tgt. Rp1,100.00
Mkt.Cap: US$980.3m | Avg.Daily Vol: US$2.84m | Free Float: 20.10%
Property Devt & Invt | Author(s): Lydia TOISUTA, Linda LAUWIRA

BEST’s aggressive land banking exercise has pushed up its share price significantly over the past few months. However, we believe there is still room for earnings upside with its successful execution and launch of more value-added products this year. We deem 1Q13 core profit in line at 17% of our forecast and 20% of consensus as we expect stronger margins and earnings in the quarters ahead. Based on its 2012 presales backlog, we keep our forecasts and DCF-based target price unchanged. Outperform maintained. Catalysts include stronger ASP growth.

ASP driven
BEST’s core profit grew by 62% yoy to Rp167bn despite a top line growth of 6% yoy. EBITDA margin expanded to 68% from 49% following the higher ASP growth. BEST only booked 17ha of land in the 1Q13 as opposed to 30ha in 1Q12. However, implied ASP grew by 86% to Rp1.5m/sq m (US$159/sq m). Given flat cost of land, its bottom line was highly leveraged on the ASP growth. BEST still has 91ha worth of land sales in the backlog, with average land price of US$100/sqm.

As of 1Q13, the company was in a net cash position of Rp278bn. This already takes into account some land bank advances the company made during the quarter to ASRI’s subsidiary. BEST has also signed an MOU with another land owner to gradually acquire land bank worth Rp276bn. Combining its existing cash and estimated EBITDA of Rp1tr in FY13, we see no need for external financing.
CIPTADANA - Flashnote – Intiland Development (DILD) 1Q’13 Result – It’s show time!


Good evening,


PT Intiland Development Tbk (DILD) announced its shimmering 1Q’13 financial result where revenue grew by 50.3% YoY to Rp419 billion and net profit increased by 98.9% YoY to Rp 80 billion. Overall, DILD’s 1Q’13 result is in-line with our estimate as revenue and earnings reach 24.5% and 22% of our FY’13 forecasted numbers respectively. The jump in the top and bottom line has been expected before, since the big chunk of marketing sales in 2012 will be booked as accounting sales in 2013.



We just talked with DILD regarding its 1Q’13 marketing sales achievement. The Company stated that it manage to record Rp 812 billion of marketing sales in 1Q’13, making up 37% of its FY’13 target of Rp2.2 trillion. Given the strong marketing sales achievement, the Company might increase its initial marketing sales target. Higher marketing sales signify better financial performance in the future.


Since DILD’s comparable peers average (APLN and LPKR) discount to NAV reached 12%, we believe that DILD’s higher discount to NAV (of 31%) is very attractive. Should DILD match its peers discount to NAV level, its share price will reach Rp820/share.