Intiland Development: Buy; Rp330; TP Rp725; DILD IJ Indicative results below consensus; 2011 projects pipeline appears promising - DBS Vickers

Strong results yet below consensus indicative result

It was reported that FY2010 net profit for Intiland is estimated at Rp300bn on the back of estimated net sales of Rp900bn. The net profit increased by 10 times from 2009 profit of Rp26bn while the sales went up 133% y-o-y from Rp387bn. The increase in net profit was partially driven by a one time gain in 2Q19 from its matured asset disposal. However, the net profit is was 12% below consensus by 12% while the sales is was off by 9%. The soaring profit growth in 2010 is was driven by Intiland’s busy activities in 2010. The company launched the launch of 4 new projects, 1 hotel grand opening as well as starting the constructions of 9 new projects. We will also see a quite busy 2011 will should also be another busy year with upcoming 3 new project launches and 2 hotels grand openings. We will revisit our number once the audited results is are released scheduled by the end of March. For now, we maintain our buy call and target price of Rp725.