2017 Performance prospect: PTPP potentially surpasses target
Bisnis Indonesia, 26 April, Prospek Kinerja 2017: PTPP berpotensi lampaui target
YOGYAKARTA - Financial performance of PT Pembangunan Perumahan (Persero) Tbk. throughout this year is expected to exceed the target set by the company, in line with actual performance in the first quarter of 2017.
For the first three months of this year, the state-owned construction and investment corporation has estimated net profit growth of 24 percent, compared with Rp 98.69 billion achieved in the first quarter of 2016.
President Director of PTPP, Tumiyana, said that the company's revenue is expected to reach 28 percent. To date, PTPP has not issued its financial statements for the quarter ending 30 March 2017. "Everything is exceeded," he told Bisnis last week.
According to him, the company has booked new contracts worth around Rp 7 trillion until the first quarter of 2017, from the Rp 40.62 trillion target of new contracts for the full year. Most of the contracts, said Tumiyana, have come from power plant projects.
Based on Bisnis's record, the company secured several c9ontracts early in this year, including a Rp 1.19 trillion road reconstruction or structural upgrading package of Karangnongko - Wangon road in Central Java, and the Cileunyi - Sumedang - Dawuan toll road project in West Java worth Rp 1.5 trillion.
To refresh memory, the company has targeted revenue of Rp 25 trillion in 2017, an increase of 42 percent compared to the estimated revenue of Rp 17.6 trillion in 2016.
With the target, the company has projected a net profit of around Rp 1.7 trillion in 2017, or around 40 percent - 50 percent higher compared to Rp 1.15 trillion in 2016. "Last year itself, the growth rate could reach 40 percent," said Tumiyana.
Meanwhile, Tumiyana said that the company continues to process its corporate action plan in the form of initial public offering (IPO) of the shares of three subsidiaries altogether in the second half of 2017. The subsidiaries in question are PT PP Peralatan, PT PP Pracetak, and PT PP Energi.
According to him, the three subsidiaries will conduct IPO sequentially in the beginning of the third quarter of 2017, the end of third quarter/2017 and in the fourth quarter/2017. "Presently, we are still on schedule," said Tumiyana.
Research analyst from Reliance Securities, Rio Adrianus, affirms he is more optimistic on the performance of PTPP in the first quarter of 2017. The company's net profit is projected to grow 33.5 percent (quarter on quarter/qoq) to Rp 124.85 billion.
"This is because of the significant carry over from last year and new contracts should also grow more than 25 percent," he said when contacted on Tuesday (25 April).
Until the end of 2017, Rio said, the company's net profit could be higher than the initial estimate. Referring to Tumiyana's explanation that the more recent contracts are mostly from power plants, Rio said that the electricity project contracts have a higher margin than ordinary projects.
"So, there is a good probability that PTPP could breach Rp 1.7 trillion. This is not to mention the new contracts yet, which are likely to exceed the target Rp 40 trillion," he said.
The business activities of PT PP Peralatan include the rental of construction equipment and the making of formwork for building projects. PP Peralatan has a number of equipment for rent, including tower cranes, passenger hoists, earth moving equipment and formwork scaffolding.
In its annual report, PTPP states that PP Peralatan will go into the business of civil engineering and bored pile works, in line with the rapidly growing national construction market.
Meanwhile, another subsidiary of PTPP that will undertake IPO, i.e. PT PP Pracetak, plans to have a third factory in Lampung with a production capacity of 200,000 tons per year. Previously, the company already has factories in Cilegon and Sadang.
Another corporate action plan, i.e. the issuance of new shares of another PTPP’s subsidiary, namely PT PP Properti Tbk., has also been made. Tumiyana said that the company has targeted [valuation of] its assets to reach Rp 47 trillion in 2017.
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