Kawasan Industri Jababeka Tbk PT : KIJA’s 1Q17 Revenue Increases 22%

PT Jababeka Tbk ('KIJA') recorded a total consolidated revenue of Rp 712.8 billion in the first quarter of 2017, anincrease of 22% compared to the same period of 2016. This growth was mainly driven by the Company's Land Development & Property business pillar, which saw revenue more than double to become Rp 194.6 billion in 1Q17, compared to Rp 93.5 billion in 1Q16, resulting mainly from rising revenue contributions from Kendal Industrial Park industrial sales, which increased to Rp 95.0 billion in 1Q17 versus Rp 11.7 billion in the first quarter of 2016.
Furthermore, both the Company's Infrastructure and Leisure & Hospitality pillars recorded modest revenue growth with 5% and 3% respectively in 1Q17 to become Rp 492.1 billion and Rp 26.1 billion respectively, both mainly as a result of organic growth. Total recurring revenue from the Company's infrastructure businesses (power, port, water) equals 69% of total revenue in 1Q17, compared to 80% in 1Q16.
Largely in line with revenue, the Company's gross profit increased from Rp 182.1 billion in 1Q16 to become Rp 248.2 billion in 1Q17. At the same time, the Company's consolidated gross profit margin increased year-on-year, from 31% in 1Q16 to 35% in 1Q17 as we saw more relative contributions from the Real Estate & Property pillar and improving margins from the Infrastructure pillar. The Land Development & Property gross profit margin declined from 66% in 1Q16 to 57% in 1Q17. This is mainly the result from more contributions from sales in Kendal, which on average have significantly lower margins compared to Cikarang.
The Infrastructure pillar gross profit margin increased slightly, from 23% in 1Q16 to 25% in 1Q17, whereas the gross profit margin for the Leisure & Hospitality pillar remained flat at 46%.
KIJA's net income for the period as per 1Q17 was recorded at Rp 66.8 billion, adecrease of 50% compared to the first quarter of 2016. This was mainly caused by a large net foreign exchange (forex) gain of Rp 116.7 billion in the first quarter of 2016, compared to only Rp 22.2 billion in the first quarter of 2017. Excluding such forex gains the Company's net income for the period would have in fact increased 180% from Rp 16.0 billion to Rp 44.7 billion. These amounts are the sum of operational and financial forex gains/losses and gain/loss on our hedging contracts.The details of this can be found in the financial and other income and expense sections of our 1Q17 financial report.
Largely in line with the Company's revenue and gross profit, KIJA's EBITDA in 1Q17 reached Rp 194.8 billion, an increase of 40% compared to the Rp 139 billion achieved in the first quarter of 2016.
Please reach out if you have questions and/or comments.
Thank you for your attention,
Tim Beekelaar
P.S. Please access our 1Q17 financial statements at IDXnet by accessing the following link: http://www.idx.co.id/Portals/0/StaticData/NewsAndAnnouncement/ANNOUNCEME... or via http://www.idx.co.id/en-us/home/listedcompanies/announcement.aspx and search for KIJA.