Dyandra Media Public Expose (2013)
Management expects 9M13 earning before tax to come at IDR62bn (+15% y-o-y) reaching only 46% of our FY13 forecast. We may need to revisit our forecast considering majority of the highly profitable exhibitions (IIMS, Mega Bazaar Computer, Festival Komputer Indonesia, IPA etc) are already included in 9M13 result.
Major projects to come in 4Q13 including Indocomtech (exhibition), OPEC, and WTO (venue hall rental).
Today media (Jakarta Post) reported that management expects FY13 revenue and earning before tax to reach IDR1trn and IDR90bn respectively, also below our initial forecast.
Management stated that exhibition management business weren’t significantly affected by weakening IDR and higher inflation, however property side saw some impact as several companies canceled their meeting and incentive activities in Dyandra venue hall.
Due to the increasing interest rates, the company temporarily postponed the development of Santika Pratama hotel and Amaris Benoa Bali hotel at least until early of the next year. The company also temporarily postponed Makassar International Expo venue hall development.
Besides the two postponed hotels, another four hotels (Santika Cikarang, Amaris Pancoran, BNDCC hotel and Santika Kelapa Gading) that are expected to be completed in this year or early of next year are still on the track with only slight delay (2 months in average).
BNDCC phase II development will be completed before end of this month and the hall will be ready to be used for APEC event in early October.
DYAN formalized cooperation with world class MICE management companies, Tarsus and UBM via joint venture, Dyandra Tarsus and Dyandra UBM. Starting next year, Dyandra Tarsus will hold “Indonesia Automotive Industry and Tuning Trade Fair” and “Zuchex Ideal Home Housewares and Gift Fair”, while Dyandra UBM will hold “Indonesia International Furniture Expo 2014”.
As one of DYAN major project with IDR90bn-IDR100bn expected revenue, IIMS still show ample room for growth. In this year, 30%-40% demand for exhibition space are still uncovered due to JIExpo limited space. Management expect to cater all the demand for exhibition space in the next year as IIMS will be held in Indonesia International Convention Centre (more than double indoor space compared to JIExpo)
The company has been executing shares buy back program starting 11 September 2013 to 11 December 2013 with IDR85bn allocated fund.
