Premier Insight : SSIA, met with Surya Internusa Semesta and here are some key highlights
Friday, March 22, 2019       09:19 WIB

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We met with Surya Internusa Semesta ( IJ; Rp590; Buy) and here are some key highlights:
targets optimistic industrial land sales of 15ha in FY19F (FY18: 8.3ha) mostly with higher demand from China and local players. Inquiry stands at 30ha coming from FMCG , building material, and electrical sector.
Management guided for 10% revenue growth in FY19F (vs. 12.5% in FY18), supported by 's new contract targets of Rp3.5tn (FY18: Rp2.7tn) from high-rise building of Rp2.2tn, Patimban toll-road of Rp1.1tn, and minor infrastructure projects of Rp200bn.
Although still in development, there are 37ha inquiries in Subang (consisting of small plots) mostly from local companies; supported by lower minimum wage and strategically located land.
However, Patimban toll-road progress is still lagging due to delayed push from government given land acquisition problem and election period. Subang is still 's main focus and they have no interest in acquiring more land in Karawang.
For financing, is scheduled to obtain loan from IFC up to Rp250bn this year to refinance Suryacipta Swadaya's bank loan. As its bond (Shelf Registration of Bond I Surya Semesta Internusa Phase I) will mature in September 2019, the management is considering to issue Phase II bond but will wait for the market condition. (Company)

Sumber : IPS RESEARCH

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