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P H
Apr 12,2017 12:48:49

Intiland Development ($DILD), Meeting Notes:

  • This year the company will launch two projects; Kebon Melati and Darmo Harapan, which was delayed from its original schedule in 4Q16.
     
  • The company formed a joint-venture with GIC Singapore to manage South Quarter mixed-use complex. The announcement was released on 3 April2017.
     
  • Intiland will have 60% in the JV and GIC 40%. The JV will develop South Quarter Phase 2 which comprises of two condominium towers and expected to launch in 4Q17 or 1Q18 the latest.
     
  • Management also indicates there were inquiries for more than 10 ha of industrial lands that is potential to be closed soon.
     
  • 1Q17 marketing sales has yet to come out, but management gave a hint it may be less than IDR300bn.
     
  • This year, the company targets marketing sales to reach 2.3trn (+41% YoY)with revenue to reach IDR2.5trn (+10% YoY) - 2.7trn (+19% YoY).
     
  • Capex is allocated around IDR1trn – 1.5 trn that will be used to construct currently on-going high rise projects such as Praxis tower 4, Spazio Tower, 1 Park Avenue tower 4, and Regatta Phase 2.
     
  • Currently the stock is trading at 12.3x FY17F P/E. We have yet to make adjustments to our forecasts. Maintain BUY with TP IDR675 implying 50% discount to RNAV.
     

Cancellation of Property Progressive Tax Plan:
Regarding the regulation about progressive tax, the Government has said that they will not implement progressive tax for unoccupied property due to the weakness in the sector. The regulation will be reconsidered and there are currently no immediate decisions. The Ministry of Agraria and Spatial Planning said that the notion of progressive tax must be appropriate with the economic condition, and it will be discussed with other ministries.

We view this as positive news for property sector because we see the progressive tax to be a burden for property owners and buyers. We understand that the Government wishes to increase their tax revenue through property sector, however we have not seen any clear direction by the Government regarding the planned progressive tax. We also view that the plan for progressive tax overlaps current policies such as LTV and final sales tax for property. Therefore, the cancellation of this plan brings relief to the property sector. (Yualdo Tirtakencana)

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P H
Dec 16,2016 11:51:53

DILD: The Rosebay construction commences

Intiland Development ($DILD) commences the construction of The Rosebay, a middle-income residential housing in Surabaya, which will establish 229 residential units. Recently, around 50% of its total units have been sold with an average selling price of IDR31.20mn/m2 . (Tempo)

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P H
Dec 14,2016 08:22:29

$DILD akan mengakuisisi tanah seluas 200 ha di Jombang. Ini untuk menutupi penurunan lahan industrinya di Mojokerto yang kini tersisa 200 ha.

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P H
Dec 06,2016 15:15:01

Media: GIC buys USD260.7m stake in Cinema21

Singapore sovereign wealth fund GIC is investing IDR3.5tn (USD260.7mn) in Cinema 21, a company that operates Indonesia's biggest cinema chain, marking the latest foreign investment in the country's burgeoning movie industry. GIC's partnership with PT Nusantara Sejahtera Raya (NSR), which runs Cinema 21, Cinema XXI and The Premiere brands in Indonesia, will expand "NSR's cinema footprint nationally", according to a joint statement on Monday. (Reuters).

Bahana Comment: Note that GIC also owns a c.8% stake in Emtek Group ($EMTK), parent company of TV Broadcaster and content company of Surya Citra Media ($SCMA). GIC has been increasing its investments in Indonesia in the past year, including collaboration with Mega Manunggal ($MMLP), Intiland Development ($DILD).

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P H
Nov 16,2016 12:36:01

Intiland Development ($DILD) plans for South Quarter’s second phase

DILD aims to start development of second phase in South Quarter next year by working together with Reco Kris Private Ltd. For the second phase, the company will develop 2.2ha of land, notably an apartment project with estimated marketing sales of Rp1.54-1.76tn and ASP/sqm of Rp35-40mn/sqm. DILD has signed a joint venture agreement with Reco Kris Pte Ltd. on Nov 10th, 2016 and sold 40% stake in PSR, company’s subsidiary that develops South Quarter for Rp1.03tn. (Bisnis Indonesia)

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P H
Nov 15,2016 22:51:16

DILD sells 40% stake in subsidiary

Intiland Development ($DILD) has sold a 40% stake in PT Putra Sinar Permaja (DILD's subsidiary) to Reco Kris Pte Ltd, for a total value of IDR1.03tn. (Bisnis Indonesia)

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P H
Sep 07,2016 09:40:11
Intiland Development: On The Right Track

Intiland has been delivering decent results –both presales and earnings. Its balance sheet remains strong, with a furthercatalyst to come from a strategic alliance for the South Quarter. We reiterate BUY, with a higher IDR675 TP (from IDR630, 14% upside) as we roll over our valuation base to FY17. Our TP implies FY17F-18F P/Es of 19.8-17.7x, with gearing falling to 56% in FY18.

¨ Catalyst in the pipeline. Talks with a potential partner for one of its key projects in Jakarta – South Quarter – are still underway. Intiland expects to maintain 60% ownership of the project. Based on our NAV calculation, South Quarter should be worth around IDR1.6trn, which should translate into a potential equity injection of IDR400-640bn. We believe our calculation is on the conservative side. We maintain our positive view on Intiland’s plan, as the strategic alliance should add value to the project, as well as mitigate risks.

¨ Forecast changes.We make some housekeeping changes, cutting our FY16F-17F earnings by 2-3%, after taking into account higher interest expense from its newly issued IDR bond. However, its increased 6M16 gearing should be temporary, as Intiland will repay IDR346bn worth of bondwhich matured 9 Jul. That, coupled with lower final sales tax of 2.5%, raises FY18F earnings by 8% and leads to net gearing of 34% (FY16F: 46%).

¨ Beneficiary of PMK 122/2016. Issued 8 Aug, this Finance Minister Regulation regulates the tax amnesty’s repatriated fund placement to non-financial sectors including property. In our view, this regulation should benefit property developers with large exposure to luxury houses or apartments, as these are likely to be the preferred type of properties for investment of the repatriated funds. As such, Intiland should benefit,as 65% of its properties are priced over IDR2bn per unit.

¨ On track. Management is optimistic about achieving its presales target. Its next new launch would be high-rise residences in Kebon Melati, with a sales target of IDR310bn. Intiland’s first semester performance has been decent, with presales achieving 47% of our target and revenue at 50% of our FY16 target, reflecting project delivery that is on track.

¨ Maintain BUY with higher TP. We roll over our valuation base to FY17, leading our TP to rise to IDR675. The stock is currently trading at a 57% discount to its RNAV, implying 18.3-16.9x P/Es for FY17F-18F.

¨ Key risks to our forecasts are:

i. Delays in projects delivery;
ii. Weak presales;
iii. Significant hike in material cost. (Lydia Suwandi)

$DILD

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P H
Apr 26,2016 13:58:10
Jakarta’s reclamation project will be put under moratorium

The Central Government and Provincial Government of DKI Jakarta have agreed to put a moratorium on Jakarta’s reclamation project until a clear regulation have been agreed by all related parties. The Government wants to coordinate and harmonize several regulations that might create confusion in regards to reclamation. They will form a team made up from Ministry of Environment and Forestry, Ministry of Maritime affairs and Fisheries, Maritime Communications Ministry, Ministry of Transportation, Cabinet Secretariat and Provincial Government of DKI Jakarta to discuss about the issues regarding reclamation regulations.

$APLN $DILD $PJAA
Bear
P H
Apr 20,2016 12:16:06
Developers received lower ratings as risks surge

State ratings agency or Pemeringkat Efek Indonesia (Pefindo) recently issued lower ratings and a less favorable outlook for some property developers. Intiland (DILD) received both lower rating and negative outlook due to company’s weakening capital structure and cash flow, of which resulted from smaller revenues and higher loans booked as of Dec’15. Though Pefindo maintained Agung Podomoro (APLN)’s (A-) rating, it changed its outlook to negative as the ongoing legal case would taint company’s brand and business reputation. Meanwhile, Modernland (MDLN) received negative outlook despite its (A) rating due to delayed property handovers and MDLN’s Rp6.79tn indebtedness, a 34.72% increase YoY

$DILD $APLN $MDLN
Bear
P H
Apr 07,2016 09:02:58
Jakarta governor Ahok to clear illegal buildings on C Island, North Jakarta. Ahok stated that there are many buildings on C island, owned by Kapuk Naga Indah (subsidiary of Agung Sedayu) that are not registered legally.

$APLN $DILD $PJAA
Bear
P H
Apr 05,2016 11:13:17
Corruption Eradication Commission (KPK) names Agung Podomoro Land (APLN) CEO graft suspect.  In total, the anti-graft commission named 6 people to be the suspects in 2 separate high-profile bribery cases involving the reclamation of the North Jakarta coast and embezzlement in state-owned construction firm Brantas Abipraya. KPK spokeswomen Yuyuk Andriati said the commission has named Mohamad Sanusi, a Jakarta councilor from the Gerindra Party, a suspect for allegedly accepting bribes from APLN to smooth the passage of bylaws required for zoning in the reclamation area. 2 employees of APLN are also named suspects, namely president director Ariesman Widjaja and staffer Trinanda Prihantoro. Separately, KPK is also investigating property developer Agung Sedayu on the project.

Comment: other listed companies are DILD and PJAA. It remains to be seen whether the same issues will arise on these companies.

$APLN $DILD $PJAA
Bear
P H
Mar 07,2016 09:22:03
$DILD tidak akan mengembangkan proyek baru di 2016 dan hanya akan fokus pada proyek yang sudah berjalan. Saat ini ada 8 proyek di Jakarta dan Surabaya. Capex yang dianggarkan senilai Rp2 triliun. Cadangan lahan di daerah Maja dan Banten akan dikembangkan dalam beberapa tahun kedepan. Selain itu, belum ada rencana untuk membeli lahan baru. Perusahaan juga menargetkan pendapatan pra penjualan Rp 2.5 T meningkat 67% dari tahun 2015 sebesar Rp 1.5 T. Target utamanya sebesar 60% dari proyek high rise building, dan selebihnya dari bisnis sewa kantor dan hotel.
Bear