Ciputra Property (CTRP IJ) BUY
Price/Tgt: Rp350/500 Mkt Cap: Rp2.2t Daily Vol: 10.7m 1-Yr Hi/Lo: Rp455/345
2010 results: Stronger bottom line growth than sales.
What's new:
Ciputra Property (CTRP) registered a good set of results during with 2010 bottom line of Rp155b or more than doubled from 2009's of Rp74b. Earnings were mainly driven by lower tax rate (-8% yoy) as well as lower forex loss (-70% yoy to Rp22b). Revenues increased by 6% yoy to Rp356b with gross and operating margins maintained at 62% and 30% respectively.
Total debt jumped more than three times to Rp55b and would be more in this year as more capital is needed to build Ciputra World's apartment funded by bank loans. However, cash increased by 3% yoy to Rp1.3t and total equity improved by 5% yoy to Rp3.4t during 2010 due to strong 2010 earning.
Comment:
The reported strong 2010 bottom line profit of Rp155b is above our expectation of Rp141b but in-line with consensus forecast of Rp152b. We will provide more details report on this results after the company releases more detail information on this 2010 results announcement.
BUY with TP: Rp500. Catalysts include: a) strong 2010 net profit, b) limited impact of higher interest rates, c) benefiting from elevated road that now being built (located on Jl. Satrio, where Ciputra World projects are situated) by government to mitigate traffic-jam in that area, d) maintained healthy balance sheet, e) cash per share is Rp210, already accounted for 40% of current share price of Rp350 and f) current price has more than 50% discount to RNAV of Rp720 per share.
source: UOB KayHian
Price/Tgt: Rp350/500 Mkt Cap: Rp2.2t Daily Vol: 10.7m 1-Yr Hi/Lo: Rp455/345
2010 results: Stronger bottom line growth than sales.
What's new:
Ciputra Property (CTRP) registered a good set of results during with 2010 bottom line of Rp155b or more than doubled from 2009's of Rp74b. Earnings were mainly driven by lower tax rate (-8% yoy) as well as lower forex loss (-70% yoy to Rp22b). Revenues increased by 6% yoy to Rp356b with gross and operating margins maintained at 62% and 30% respectively.
Total debt jumped more than three times to Rp55b and would be more in this year as more capital is needed to build Ciputra World's apartment funded by bank loans. However, cash increased by 3% yoy to Rp1.3t and total equity improved by 5% yoy to Rp3.4t during 2010 due to strong 2010 earning.
Comment:
The reported strong 2010 bottom line profit of Rp155b is above our expectation of Rp141b but in-line with consensus forecast of Rp152b. We will provide more details report on this results after the company releases more detail information on this 2010 results announcement.
BUY with TP: Rp500. Catalysts include: a) strong 2010 net profit, b) limited impact of higher interest rates, c) benefiting from elevated road that now being built (located on Jl. Satrio, where Ciputra World projects are situated) by government to mitigate traffic-jam in that area, d) maintained healthy balance sheet, e) cash per share is Rp210, already accounted for 40% of current share price of Rp350 and f) current price has more than 50% discount to RNAV of Rp720 per share.
source: UOB KayHian