DBS Intiland Development : Not Rated; Rp550; DILD IJ

Intiland's 35 times net profit growth in 1H10

With 134% y-o-y increase in revenue to Rp455.2b, Intiland (DILD) booked a net profit of Rp223.1b, 35.4 times over its 1H09 net profit of Rp6.3b. The revenue is broken down as follow, 86% from residential property sales, 8% from property maintenance and service, 5% from the sports centre, and 1% remainder comes from miscellaneous income. The high jump in the net profit is due to low interest rate environment as well as land price increase in some of DILD's projects. In 1H10, DILD also
managed to lower its interest expense by Rp6.6b to Rp20.1b.

In 2Q10, DILD also sold its shares in PT Grand Interwisata worth Rp158b, which also contributed to the high profitability. DILD plans to continue divesting its low-return assets, till the year-end and focus to their profitable core business.
As part of its aggressive expansion, DILD will launch its Yogyakarta 2-star Whiz Hotel in August 2010. This marks the beginning of Whiz Hotel chain network in Indonesia. DILD will also complete the development of Jungle Walk in Talaga Bestari by the latest 2011.