4Q17 Slight Margin Performance
CTRA underperformed in 2017. Of note, its revenue declined by 4.40% y-y into IDR6.4 trillion underlined by the decline of 7.6% y-y in the performance of the property development segment coupled with the downturn of 4.19% y-y into IDR894 billion in 2017 net profit. However, it posted the 4Q17 better margin performance compared to the 3Q17 margin performance.
Optimism for 2018 Rosier Performance
CTRA succeeded in posting the hike of 33% y-y into IDR1.614 trillion in the 1Q18 marketing sales. The figures were the highest compared to the respective marketing sales in 1Q16 and 1Q17 and reached 21% from the 2018 marketing sales target of IDR7.7 trillion. Of note, the 1Q18 marketing sales was still dominated by the units sales with the selling prices lower than IDR1 billion with the portion of 37%.
Indeed, CTRA is likely a way more aggressive in 2H18 by launching a number of projects: apartments in Cawang and Pulo Gadung, and superblock in Bandung. Along with the improvement in the 1Q18 performance and the revenue realization of marketing sales obtained in prior years, we oversee that it likely accomplishes the minimum revenue growth target of 20% in 2018.
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