PTPP Cuts Target FY14 New Contract to IDR22trn

Management of PT Pembangunan Perumahan (PTPPIJ, Neutral, TP: IDR2,590) has stated that the company reduced this year’s target new contract from IDR24trn to IDR22trn. This was done because several projects are experiencing some kind of delays and will resume next year. As of September, PTPP’s new contracts has reached IDR12trn or 50% from the initial target. The new contracts revision is beyond our expectation. As of now the new target is 7% less than our forecast of IDR23.7trn new contract. There is a potential forecast revision should the 9M14 performance also falls below of our expectation.