DBS Intiland Development Coming back with a bang TP Rp 725.73

• Restructuring ends dormant years
• Strong development pipeline and potential
• Initiate coverage with BUY rating and 42.3% upside potential to Rp725.73 TP

Restructuring ends dormant years. DILD had been mostly dormant with no major developments since the 1997 Asian financial crisis. In 2007, there was a major
restructuring and a new CEO took over and implemented a new aggressive expansion plan, and its balance sheet turned around with debt dropping from Rp1.48tr to
Rp0.39tr post-restructuring. In 1H10, DILD tripled its land bank to 2400ha, of which 55ha are earmarked for high rise developments, the largest in Indonesia.

Strong project pipeline and potential. DILD has a strong development pipeline for the next five years. It will develop four townships with a minimum of 220ha of
saleable area, eight mixed-use high-rise developments with a minimum of 60ha of saleable area, and enter the budget hotel business by developing the Whiz Hotel chain
in major cities in Indonesia. DIDL also has minor developments such as the 146ha Ngoro Industrial Estate and 1.8ha Pinang Residences cluster.

BUY, 42.3% upside to Rp725.73 TP. Our TP is based on 30% discount to RNAV of Rp1036.80/share, to account for execution risks of future projects. DILD’s 10.5x FY10F PE multiple is cheaper than its property developer peers average of 23.6 FY10F. The stock is currently trading at undemanding 0.5x P/RNAV, and we initiate coverage with a BUY rating. The materialization of future projects could be a re-rating catalyst.