CLSA Ciputra Development (CTRA IJ) update from analyst Sarina Lesmina

CTRA Group reported July' marketing sales, -29% MoM to Rp73bn. 7M10 sales of Rp1.05tn was 60% of FY10E of company's of Rp1.75tn, and 70% of our FY10E of Rp1.5tn. So, still within our expectation.

Performance of subsidiaries:

· CTRA Greater Jakarta contributed 58% to total group sales: -9% MoM to Rp42bn. 7M10 sales was Rp346bn, 69% of FY10E. Citra Garden City: -16% MoM, Citra Raya Tangerang: +13% MoM, and Citra Indah Jonggol: -24% MoM.

· CTRA Regional projects: up 42% MoM to Rp18bn. 7M10 sales was Rp367bn, 58% of FY10E. Palembang had a +54% MoM growth in sales, while most other cities experienced a slowing down in sales

· CTRS (Greater Surabaya + Lampung): -66% MoM to Rp12bn. 7M10 sales was Rp339bn, 64% of FY10E. Landed residential sales experienced a slow down in July, however Ciputra World Surabaya had an above target sales, +31%MoM.

· CTRP continues to disappoint with its CW Lot 3&5, with no sales booked in July. Hence, 7M10 sales remained at Rp1.6bn, 1.7% of FY10E of Rp93bn.

Maintain our “Sell” call on CTRA (TP: Rp300), given the execution risk of the CTRP projects. CTRA now trades at 42% discount to NAV, however we think there are more upside investing in other names with better execution such as Summarecon (SMRA IJ) and Bumi Serpong (BSDE IJ). SMRA trades at 36% disc to NAV, and BSDE at 47% disc.