KIJA’s Net Income Increases 29% in 2016

10 Apr 2017 -

March 31, 2017



PT Jababeka Tbk (“KIJA”) recorded a total revenue of Rp 2,931.0 billion for the full year 2016, a decrease of 7% compared to 2015. The Company’s Land Development & Property pillar saw revenue decline just 6% to become Rp 1,101.4 billion in 2016 mainly on reduced contributions from the sales of land & factory buildings, and shop houses, despite increasing contributions from the sales of developed Land, houses & land, and apartments. The Infrastructure Pillar revenue decreased 8% to become Rp 1,723.1 billion as a result of less contribution from power sales, which was caused by a leakage in one of the boilers. Revenue from infrastructure services (water, waste water and estate management) and dry port increased 5% and 26% respectively in 2016. KIJA’s Leisure & Hospitality pillar posted a 2% increase in revenue to become Rp 106.5 billion in 2016.

Recurring revenue from the Infrastructure pillar contributed 59% to total revenue in 2016, flat compared to 2015.

In absolute terms the Company’s gross profit decreased by 10% to become Rp 1,243.2 billion in 2016.  The consolidated gross profit margin for 2016 was recorded at 42.4%, slightly down compared to 2015 with 44.2%. This slightly lower gross profit margin is mainly the result of product mix within the Land Development & Property pillar, which saw more relative contributions from the sales of land plots in Kendal and apartments, which resulted in the overall gross profit margin for the Real Estate & Property pillar to come down to 76% in 2016, compared to 82% in 2015. The gross profit margin for the Infrastructure and Leisure & Hospitality Pillar remained flat at 21% and 41% respectively in 2016, compared to 21% and 42% respectively in 2015.

KIJA’s net income increased 29% to become Rp 426.5 billion despite a decrease in revenue and gross profit – in 2015 the Company recorded Rp 331.4 billion as net income. The main reason for this increase is the result of a foreign exchange (forex) gain of Rp 132.7 billion in 2016 compared to a forex loss of Rp 116.2 billion in 2015. These amounts are the sum of financial forex gains/losses and gains on our hedging contracts, as well as operating forex gains and losses, which can be found in the financial income/expense section and other income/expense of our FY16 audited report.

In terms of real estate marketing sales, KIJA realized Rp 1.56 trillion for the year 2016, thereby exceeding the FY16 target (Rp 1.4 trillion) by more than 11% and exceeding the FY15 achievement (Rp 1.0 trillion) by more than 50%. In 2016, Cikarang remained the main contributor to the marketing sales with Rp 1.15 trillion in value and 21 hectares in land area, in line with the target for FY16. Kendal added Rp 359 billion in value and 26 hectares in land area to the Company’s marketing sales, significantly higher than the target of Rp250 billion. Lastly, Tanjung Lesung and other products added Rp 55 billion in marketing sales in 2016.

Please reach out if you have questions and/or comments.

Thank you for your attention,

Tim Beekelaar

P.S. Please access our FY16 financial statement sat IDXnet by accessing the following link: http://www.idx.co.id/StaticData/NewsAndAnnouncement/ANNOUNCEMENTSTOCK/From_EREP/201703/c1779b3f21_6a... or via http://www.idx.co.id/en-us/home/listedcompanies/announcement.aspx and search for KIJA.