Mandiri Sekuritas Pembangunan Perumahan: 1Q10 net profit jumps 26.2% yoy (PTPP, Rp710, Not rated)

􀂄 PTPP’s 1Q10 top line level dropped 18.9% yoy to Rp561bn. However, net profit grew 26.2%yoy to some Rp15bn, given better margins. 1Q10 financial figures reflects around 8-10% from Bloomberg consensus FY10 target. On the balance sheet level, we noticed that cash position increased to Rp525bn (from Rp75bn in 1Q09), as well as inventory level to Rp1.3tn from Rp269bn in 1Q09. The company targets FY10 revenue and net profit to reach Rp6.5tn (+54.6% yoy) and Rp359bn (+120.2% yoy), respectively. The target reflects PER10F of 9.6x, which is relatively similar with average construction companies.

PTPP 1Q10 Results
Rp bn 1Q10 1Q09 yoy (%)
Total revenue 561 692 -18.9
Gross profit (Loss) 48 55 -12.4
Operating profit (Loss) 44 39 12.9
Pre-tax profit (Loss) 31 22 39.4
Net profit (Loss) 15 12 26.2
Gross margin(%) 8.5 7.9
Operating margin (%) 7.9 5.6
Pre-tax margin (%) 5.6 3.2
Net margin (%) 2.7 1.8