CIMB Quick Takes - Ciputra Development - No holding back

Maintain Outperform on Ciputra, whose Aug 10 presales were Rp159bn, up 4% yoy and 118% mom. Year to August, it had sold Rp1.2tr worth of properties from 16 projects, matching its FY09 presales. We believe the company is set for record presales this year, with a target of Rp1.7tr, vs. a previous high of Rp1.5tr in 2008. We maintain our earnings estimates, DCF-based target price of Rp450 (WACC 12.5%) and Outperform rating on the back of its increasing ability to supply which should result in multi-year presales growth and profitability. We believe any upside surprises in the booking of presales proceeds can provide stock catalysts.