Kawasan Industri Jababeka Tbk PT : KIJA's 9M17 Revenue Increases 20%

KIJA's 9M17 Revenue Increases 20%

PT Jababeka Tbk ('KIJA') recorded a total consolidated revenue of Rp 2,329.4 billion in the first nine months of 2017, an increase of 20% compared to the same period of 2016. This growth was mainly driven by the Company's Land Development & Property and Infrastructure business pillars, which saw revenue increase 23% and 20% year-on-year respectively. Land Development & Property was mainly driven by an increase in revenue contribution from Kendal, which increased nearly tenfold from Rp 29.4 billion in 9M16 to Rp 269.7 billion as per 9M17 on the back of improved sales.
Over the same period, revenue contributions from the power plant, part of the Infrastructure pillar, increased 25% from Rp 918.7 billion as per 9M16 to Rp1,149.1 billion in 9M17 mainly because the power plant operated at full capacity in 2017 whereas parts of the second and third quarter of 2016 the plant operated at half capacity because of a leakage in one of the boilers - which was fully repaired in August last year. Total recurring revenue from the Company's infrastructure businesses (power, port, water) equals 63% of total revenue in 9M17, equal to 9M16.
Largely in line with revenue, the Company's gross profit increased from Rp 742.0 billion in 9M16 to become Rp 857.7 billion in 9M17, an increase of 16%. At the same time, the Company's consolidated gross profit margin decreased slightly; from 38% in 9M16 to 37% in 9M17. This reduction is mainly the result from a lower gross profit margin from the Land Development & Property pillar in 9M17 at 61%, compared to 74% in 9M16. This lower margin 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 from 20% in 9M16 to 23% in 9M17, whereas the gross profit margin for the Leisure & Hospitality pillar increased from 41% in 9M16 to 46% in 9M17.
KIJA's net income for the period as per 9M17 was recorded at Rp 165.7 billion; a decrease of 52% compared to the first nine months of 2016. This was mainly caused by a large net foreign exchange (forex) gain of Rp 186.3 billion in the first 3 quarters of 2016, compared to loss of Rp 22.0 billion in the same period of 2017. Excluding such forex gains the Company's net income for the period would have in fact increased 18% from Rp 158.8 billion to Rp 187.7 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 9M17 financial report.
Largely in line with the Company's revenue and gross profit, KIJA's EBITDA in 9M17 reached Rp 672.3 billion, an increase of 15% compared to the Rp 585.8 billion achieved in the first nine months of 2016.
Please reach out if you have questions and/or comments.
Thank you for your attention,
Tim Beekelaar
P.S. Please access our 1H17financial statements at IDXnet by accessing the following link: http://www.idx.co.id/StaticData/NewsAndAnnouncement/ANNOUNCEMENTSTOCK/From_EREP/201711/20171130151116-8837-0/Laporan%20Keuangan%20Konsolidasian%20KIJA%20Q3%20-%202017.pdf or via http://www.idx.co.id/en-us/home/listedcompanies/announcement.aspx and search for KIJA.