Oct 09, 2017 11:45:18

We visited Agung Podomoro ($APLN) to learn more about the  company’s plans regarding the reclamation island and here are the key  points:

Media has reported that moratorium on G island will be lifted soon following  C & D island and currently management is waiting for the Regional  Regulation (Raperda) to be issued by the local government. Management  conservatively estimate that Raperda will be issued in 2018.

Land Bank on Pluit City reaches 160 ha. Though around 25% of that has  been sold, it was recorded as Customer Advances due to the moratorium  status.

Once Raperda for land reclamation is issued, the company will be able to  resume marketing sale on its Pluit City project. We think this will be the near  term catalyst for the company.

The company has signed a Sales Purchase Agreement with Thai-listed  Strategic Property Investors Company Limited (REITS) regarding the sale  its Pullman Jakarta Central Park Hotel for ~IDR1.3trn. Management  estimate the company will received around IDR800bn of the proceeds and  the company effectively still owns 18% of the hotel through the REIT.

Land bank for future developments stood at 403 ha where 285 ha of it are  industrial lands that has been agreed to be sold to China Fortune Land  Development (600340 CH, NR) in 2019 – 2020 once the company has  cleared all the land certifications.

Marketing sales until 1H17 has reached IDR2.4trn or 80% from its IDR3trn  target this year. Management is guiding 10% growth for this year’s top line  and bottom line.

Using management’s guidance, we estimate that the stock is trading at 8x  FY17F P/E, Not Rated. (Yualdo Tirtakencana)