Mandiri Sekuritas Ciputra Development: CTRA 1H10 net profits increased by 48.1% yoy, below our expectation (CTRA, Rp375, Buy, TP: Rp490)

CTRA posted 1H10 net profit of Rp92.7bn or +48.1% yoy, which is below our expectation (42.0% of FY10F) and consensus estimates (38.7% of FY10F). Revenue increased by 10.5% to Rp719.3bn, as realization of company housing sales in 2008 and 2009 which came to delay last year. The company also recorded better net margin to 12.9%, compared to 9.6% last year, yet is below compared to other property basket. As per yesterday’s closing price, CTRA trades at 47% discount to our NAV10, and PE10 23.6x. Buy.