Jul 24, 2010

ELTY won't rights issue in 5 years

Property developer PT Bakrieland Development Tbk (ELTY), subsidiary of PT Bakrie&Brothers Tbk (BNBR), said  the company will not hold rights issue in the next 5 years because it has grabbed sufficient cash to develop land bank.
Bakrieland is estimated to book 35%-40% growth in operating profit in the first half this year from the same period last year.
"We are underway to close 1H financial report. But, we estimate operating profit could rise 35%-40% in the first half this year," said Bakrieland's President Director Hiramsyah S. Thaib.
Bakrieland posted Rp63.99 billion of operating profit in 1H 2009. Considering a 35%-40% growth, the company is calculated to make Rp86.39 billion-Rp89.59 billion of operating profit.
Hiramsyah said net profit is predicted to rise 35%-40% in 1H 2010 from a year before. The company posted Rp56.90 billion of net profit in 1H 2009. It means the company is estimated to post Rp76.82 billion-Rp79.66 billion.
Sales is calculated to increase 40%-50% in 1H 2010 to Rp516.29 billion-Rp553.17 billion from Rp368.78 billion in 1H 2009.
According to him, Bakrieland usually makes a 30%-35% growth in revenue in the first half and books a 65%-70% rise in the second half.
"Considering the first half performance, we are optimistic to reach a 30% growth in sales target," Hiramsyah said.
The target is in line with housing credit growth estimated to reach a 40%-50% increase this year. "Bank Permata had announced a 40% growth in housing credit in the first quarter this year. It believes to reach 50% growth in housing credit," he said.

Disclosure: No position at the stock mentioned above.

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