LPCK: Kinerja dan sustainability usaha Lippo Cikarang (14/11/16)

Lippo CikarangDear Pak Ali,

On behalf of Pak Hong Kah Jin, I reply your email as follows:

1. Looking at 3Q16’s financial report, it seems that company is a little off to maintain its previous performance, any specific moves to boost marketing sales in last quarter? Any target in 2016 and 2017 company¬†might try to achieve in terms of top and bottom lines?

In FY 2016, LPCK will soon launch 6th tower in Orange County, Newport Park which will boost marketing sales. The budgeted marketing sales for 2017 will be announced in due course, together with our parent company, Lippo Karawaci.

2. How soon do you see the company will be able to regain its steep growth like how it used to be? Will the next 5 years be as challenging as 2016?

We expect the property market will start to recover by mid 2017. Property market in Indonesia always in line with Indonesia macro economy, hence in the next 5 years will depend on Indonesia’s economy

3. We have heard much about OC, but not so much on Indo-Shenzhen’s project, are you able to share more info on this project briefly? Any other local companies to be involved in this massive project considering Lippo Cikarang has limited landbank? When will this project kick start and what will be the main focus on initial stage? How is capital structure?

So far LPCK has signed with Shenzhen Yantian Port Group and Country Garden to develop Indonesia-Shenzhen Industrial Estate. Further details are currently under negotiation between three parties, we will announce to the public once all details have been finalised and agreed upon

4. With only New Port, will company be able to achieve 2,4T marketing sales set for 2016, or will there be more projects launched in late 4th Q?

LPCK expects marketing sales to be below initial target set for 2016, similarly with other developers who have revised their marketing sales downwards.

6. Are you able to share any market research data to support your view on the rebound of property market in mid 2016?

We expect the property market to rebound in mid 2017, not in 2016, as tax amnesty program will end by March 2017. This is in line with many analysts predicts that the end of tax amnesty program will bring back investors’ appetite to invest in property again

6. Last but not least, any other corporate actions within the next 12 months we should be aware of?


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