PP Properti Tbk (PPRO) acquired 55% of Wisma Seratus Sejahtera’s share worth 49,5 billion IDR. The inorganic expansion will increase the company’s revenue to 4,5 trillion IDR by 2019, soar by 200% compared to 2015’s revenue.
Taufik Hidayat, the President Director of PPRO, said that PPRO cooperated with WSS to build Evencio Apartment at Margonda, Depok with a concept of drug-free apartment. The apartment that has two towers with 1.200 units is predicted to contribute marketing sales worth 700 billion IDR. “One tower 500 units with a price of 400 million IDR-600 million IDR,” said Taufik.
Andre Mirza Hartawan, the Main Commissioner of WSS, said that WSS had 50.000 m2 of landbank around Evencio Apartment area, Margonda, 1 ha of land in another location at Magonda, 1 ha of land at TB Simatupang, and 7.000 m2 at Buncit Raya.
PRRO is also planning to build a college apartment at Tembalang, Semarang and Serpong, Tangerang Selatan. The total is 15 projects that are still being worked by the company.
PPRO expanded joint venture partnership with several partners, like Kawasan Industri Jababeka Tbk (KIJA) and Sentul City Tbk (BKSL). The joint venture project will be started in 2017.
The inorganic expansion and joint venture partnership will encourage the PPRO’s target sales achievement worth 5,5 trillion IDR by 2019, increases by 189% compare to the realization in 2015 worth 1,9 trillion. The company’s net profit is also predicted to raise double times into 630 billion IDR by 2019 compare to their previous net profit of 300 billion IDR in 2015.
Bahana Securities recommended BUY for PPRO with a target price of 815 IDR. (*)
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