October 31, 2019

 

Cikarang – PT Lippo Cikarang, Tbk (“LPCK”) today announced financial results for the nine months ending September 30, 2019. The company reported total revenues of Rp1,060 billion, representing a decline of 42% from Rp1,841 billion in the same period last year. The decrease was from the nonrecurring sale of land to PT MSU in 9M18 amounting to Rp838 billion in revenue. On a normalized basis, 9M19 revenues were up 5.8% in the period to Rp1,060 billion from Rp1,003 billion. In 3Q19, LPCK reported revenues of Rp374 billion, representing an increase of 30% from Rp287 billion in 2Q19 as property sales have increased following the election and Islamic festive period.

As reported, gross profit for the period decreased to Rp396 billion in 9M19 from Rp1,054 billion in 9M18 while our net profit decreased to Rp367 billion from Rp2,712 billion. On a quarter on quarter basis, our gross profit increased by 17% to Rp127 billion in 3Q19 from Rp117 billion in 2Q19.

Our revenues were supported by higher sales of industrial lots (Delta Silicon 8 sale in 1Q19) and an increase in town management (tariff increase of 15%)  which led to year on year revenue growth of 253% and 19%, respectively. Residential houses and apartment amounted to Rp653 billion contributing to 62% of total revenue while revenue from the sale of industrial and commercial land amounted to Rp135.5 billion, thereby contributing to 13% to total revenue.

 

 

				Difference
(RpBn)	Profit and Loss	9M19	9M18	YoY
Revenue
	Sales of Residential Houses and Apartments	653.4	717.0	-9%
	Town Management	235.6	198.1	19%
	Sales of Commercial Land and Shophouses	68.9	857.5	-92%
	Sales of Industrial Lots	66.6	18.8	253%
	Rental Income and Others	36.2	49.4	-27%
	Total Revenue	1,060.3	1,840.8	-42%

 

				Difference
(RpBn)	Profit and Loss	9M19	9M18	YoY
Gross Profit
	Sales of Residential Houses and Apartments	194.3	257.5	-25%
	Town Management	98.1	88.7	11%
	Sales of Commercial Land and Shophouses	56.4	663.7	-91%
	Sales of Industrial Lots	35.0	14.4	143%
	Rental Income and Others	12.3	30.1	-59%
	Total Gross Profit	396.1	1,054.4	-62%

The Company’s reported EBITDA for 9M19 was recorded at Rp347 billion a decrease of 68% from Rp1,074 billion from the same period last year.

 

LPCK’s total assets increased by 34% to Rp12,377 billion from Rp 9,225 billion at the end of the third quarter following completion of the rights issue and the Rp2.9 trillion (USD$200 million) that was raised.

President Director of PT Lippo Cikarang Tbk, Simon Subiyanto said: “Given the current competitive property market, we continue to focus on providing strong operational results while providing our customers with high quality products. Through the product that we just launched Grand Acacia Garden, we believe that market demand will be high given its attractive price point for the residential segment”.

 

Currently, LPCK’s subsidiary has gradually handed over 3 towers in Orange County (Irvine, Westwood and Pasadena Tower) to customers. The three towers consist of 1,271 apartment units valued at Rp1.1 trillion and represent another example of LPCK’s commitment to hand over apartment units on time.

 

As we focus on opportunities for future growth, it is exciting to see the infrastructure coming into place in the eastern corridor of Jakarta. The government’s commitment to the eastern corridor is being displayed by multiple infrastructure projects including the Cawang – East Bekasi LRT (Light Rapid Transit) with work reaching 59%, the Jakarta – Bandung High-Speed Railway is targeted to operate in the next few years, and the Jakarta – Cikampek elevated toll road has reached 96% completion and is estimated to be completed in the coming months. In addition there continues to be progress at the new Patimban Deep Sea port, while the Kertajati airport has been in operation since 2018.

 

LPCK continues to build upon its reputation as an urban area property developer with an international standard for facilities. Lippo Cikarang is located within an area of approximately 3,250 hectares in one of the largest industrial areas in Southeast Asia. LPCK has successfully built more than 17,192 houses and has a population of 53,695 residents. In the Lippo Cikarang industrial area, there are around 551,795 people working every day in 1,316 manufacturing facilities.

LPCK is a subsidiary of PT Lippo Karawaci Tbk (“LPKR”). LPKR is one of the largest property companies in Indonesia based on its total assets and revenues and is listed on the Indonesian Stock Exchange. LPKR is supported by solid recurring income and is supported by diversified land inventories. LPKR’s business consists of Residential / Township, Retail Malls, Hospitals, Hospitality, and Asset Management.

 

For Further Information Please Contact :

Investor Relations

William Wijaya Utama

021-8972484 / 021-8972488

 

Corporate Secretary

Lora Oktaviani

021-8972484 / 021-8972488

 

Visit our website: www.lippo-cikarang.com

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This press release has been prepared by PT Lippo Cikarang Tbk (“LPCK”) and is circulated for the purpose of general information only. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. LPCK disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither LPCK nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.

Forward-Looking Statements

Certain statements in this release are or may be forward- looking statements. These statements typically contain words such as “will”, “expects” and “anticipates” and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release.