Pembangunan Perumahan Robust Outlook
PTPP booked 38.6% of its FY13F net profit target in 1H13 – much higher than the 19%-21% achieved in the past two years. Hence, it is cautiously optimistic of posting robust FY13F earnings and guides for a new IDR400bn earnings target (8.1% above earlier forecast). As at end-June, 48.2% of the new FY13 target contract had been achieved – 2.5x higher y-o-y. In view of the robust outlook, maintain BUY, with IDR1,700 TP.
1H13 results in line
Pembangunan Perumahan Persero (PTPP) booked IDR143.5bn net profit in 1H13 (up 123.5% y-o-y) on IDR4.2trn revenue (up 106.2% y-o-y) – in line with the Company’s guidance as stated in our 3 July 2013 report – PTPP: On Track For a Solid 1H13 Showing. With this, PTPP’s 1H13 bottomline now accounts for 38.6% of its IDR370bn FY13 target, much higher than 19%-21% achieved in the past two years. The Company’s costs, especially labour, increased by a whopping 54.5% amid robust revenue growth, while net gearing grew to 1.4x from 0.3x a year ago following PTPP’s bond issuance in 2H12 – both within our expectations.
Given its solid 1H13 showing, Management is cautiously optimistic of a robust FY13, increasing its target net profit to ~IDR400bn, up from IDR370bn forecast earlier this year. Accordingly, we adjust our FY13F revenue and net profit estimates by 3.7% and 6.8%, which are 3.7% and 5.1% above the Company’s guidance respectively. PTPP’s 1H13 net profit makes up 36.9% of our new FY13F target.
Record high orderbook
Maintain BUY and IDR1,700 TP. As at end-June, PTPP had booked IDR9.5trn in new contracts, 2.5x what it achieved in the same period last year. This accounted for 48.2% of its FY13 target. This achievement boosted the Company’s orderbook backlog to a record high of IDR25.3trn, securing PTPP’s prospects over the next two years.
In light of the positive fundamental developments amid its recent share price weakness, we maintain our BUY call on PTPP, with a IDR1,700 TP – implying a 17.0x FY14F target P/E. PTPP is currently trading at 17.7x FY13F P/E and 14.1x FY14F P/E. Maintain BUY.
