PTPP’s 1H14 Earnings Grew 2% y-o-y

Throughout 1H14, PT Pembangunan Perumahan (PTPP IJ, Under review) booked IDR4.6trn of revenue (+10.2% y-o-y) and IDR147bn of net profit (+2.2% y-o-y). The results are in-line with our forecast as well as consensus’ where top line and bottom line account for 32% & 22% respectively from our FY14F projection (Vs. 31% & 27% from consensus). 1H14 operating margin also grew 69.84bps y-o-y to 8.1% due to lower growth on cost of revenues of 7.9% y-o-y compared to topline growth. However, slim bottom line growth in 1H14 was contributed by lower net income of IDR85bn (-15.5% y-o-y) during 2Q14 because of 79.8% y-o-y higher opex during 2Q14. This result in a slight drop of 1H14 net margin to 3.2% (-24.8bps y-o-y).