Bakrieland Development (ELTY) - Stable Margin

Bakrieland Development (ELTY) – Maintain HOLD
Price: Rp137 – Target Price: Rp180

FY10 Results: Stable Margin

  • ELTY reported revenue of Rp1,367 bn in FY10, grew by 29.1% yoy,  while net profit jumped by 35.6% yoy to Rp178 bn.
  • Operational margin looks stable, with gross margin stood at 48.9% (from 47%) and operating margin at 17.7% (from 15.7%)
  • Overall, ELTY’s FY10 results were above our forecast and consensus, with net earning accounted for 158% of our FY10 estimates.
  • Total debt increased by 42.3% to Rp4,385 bn, but leverage level slightly declined after right issuance, with net gearing dropped to 0.43x (from 0.5x).
  • The stock is currently trades at 0.7x PBV’11 and 43% discount from its NAV value of Rp241/share.
  • We retain our HOLD recommendation for the counter with price target Rp180/share (25% discount from NAV).