Mandiri Sekuritas Intiland Development: DILD reports net profit jump for 1Q2010 performance (DILD, Rp990, Not rated)

􀂄 DILD reported surged in net profit to reach Rp85 bn for 1Q2010 performance, compared Rp3 bn last year during the same period, as a result from the residential sales and inventory sales of the company’s assets that give only low single digit yield to the company, which provide greater margin. The company will continue to divest its inventory assets this year (about 15 ha), to expect quadruple increase in revenue from 2009 levels (Rp386.8 bn FY09), despite contribution from the sold out 108 units of the 3 towers planned 1Park apartment, worth ±Rp152.5 bn and other recurring income of its investment properties which as per Des09 contributed 30.4% of the total revenue. Currently, the company has total land bank of 1,400 ha.

􀂄 Over the next 3-4 years, the company intends to develop mixed use high-rise properties which include a Simatupang project as well as projects in Tangerang and in Pantai Mutiara. The company expects to generate revenues of about Rp14tn over the
period.

􀂄 The company is currently has an outstanding warrant of Rp1tn (sweetener from the recent rights issue) or equivalent 18% of the outstanding shares, which can be exercised on 22 Oct 2010 at Rp1,050/share. Based on latest colliers’ revaluation on the land bank, NAV of the company stood at Rp1,798/share, which the current price trading at 45% discount. The company is set to have a re-appraisal of the assets within the next couple of weeks. There is no analyst coverage on the stock.

Mandiri Sekuritas We visited GJTL yesterday, some key takeaways: (GJTL, Rp990, Not-rated)

􀂄 Revenue FY09 reaches Rp7.9tn (-0.3%yoy), due to volume decreases in the export markets. Around 38% of sales contribute from export, 10% from OEM and the rest 52% for replacement.
􀂄 Gross profit increase 60.5% to Rp1.8tn, as the company benefited from lower raw material inventory costs ordered in the first part of 2009, consequently, gross margin increase to 23.0% compare with 14.3% in 2008.
􀂄 Net profit improve significantly to Rp905bn compared with net loss of Rp625bn in 2008, due to improving operational margin and gain from foreign exchange of Rp487bn compare with loss of Rp786bn in previous year.
􀂄 For 2010, GJTL targets sales volume will increase by 15-20%, due to additional demand from Michelin and automotive sales growth. In FY10F, demand for tires from Michelin is estimated reaches 3mn units, compared with 1.9mn in 2009, and become 5mn units in 2011.
􀂄 The company plans to expand its production capacity, especially for radial tire and motorcycle tire. Currently, radial tire has capacity of 35,800 pcs/day (utilization 61%) and become 45.000 pcs/day by 2011. Motorcycle tire capacity is 60,000 pcs/day (utilization 82%) and targeted become 90,000 in 2011 and reaches 105,000 in 2012.
􀂄 We do not cover on this stock, and there is only one analyst on market covering the stock.