Indonesia developer Sinarmas Land had a fruitful second quarter, lifted by higher revenue and better operating performances from its Indonesia division.
The firm reported yesterday that net profit rose 78.7 per cent to $63 million for the three months to June 30, compared with the same period a year ago.
Turnover rose 34.3 per cent to $299.3 million, owing to higher sales of land parcels, more residential units being handed over to homebuyers and increased revenue recognition from Indonesian apartments.
Sinarmas Land said it recognised $117.3 million worth of revenue in the quarter, from sales of land to its joint venture with Mitsubishi Corporation "for further joint development".
Quarterly gross profit rose 58.8 per cent to $244.9 million, and gross profit margin increased 12.6 percentage points to 81.8 per cent.
The firm said this was owing "to higher profit margin deriving from sales of land parcels in Indonesia, as well as sales of retail and garage space from its China division".
The acquisition of the 33 Horseferry Road site in Britain lifted total assets to $6.21 billion, with cash and cash equivalents at $845 million and a net debt to equity ratio of 21.4 per cent.
AT A GLANCE
Q2 NET PROFIT: $63 million (+78.7%)
Q2 REVENUE: $299.3 million (+34.3%)
Total borrowings increased by $280.8 million to $1.64 billion, owing to new United States dollar-bonds issued, debt from acquiring investment properties, and borrowings on capital expenditures, said Sinarmas.
Quarterly earnings per share was 1.48 cents, compared with 0.83 cent previously, while net asset value per share was 46 cents as at June 30, compared with 47 cents as at Dec 31.
Executive director Margaretha Widjaja said: "Cooling commodity prices and lethargic private consumption, led by both global economic uncertainties and increased international protectionism sentiments, continue to weigh on the growth of Indonesia's economy."
However, she added that the nation's sound domestic fundamentals are a key attraction to many foreign investors, resulting in 10.6 per cent year-on-year growth in foreign direct investment.
"With a narrow current account deficit, a stable rupiah currency and Indonesia's government commitment to increase infrastructure spending and introduction of more economic stimulus packages, the group is cautiously expecting a stronger growth recovery," said Ms Widjaja.
She added that "the group will continue to actively pursue investment opportunities in London, Europe... to boost recurring income".
Sinarmas shares closed half a cent higher at 43.5 cents yesterday.