Agung Podomoro Land In-line FY12 net profit

Agung Podomoro Land: In-line FY12 net profit of Rp812bn (APLN, Rp500, Buy, TP: Rp600)

APLN released their FY12 results booking a net profit of Rp812bn which is in-line with both ours (99.4%) and consensus’ (101.0%) estimates. The company has also booked in-line revenue and gross profit despite their below expectation operating profit and pretax profit.

On a yearly basis, APLN showed positive growths on their entire margin. However, their qoq margins were hit due to declining revenue by 2.1% while cost of sales grew by 20%. Higher than expected opex as well as lower than expected other incomes contributed to the below expectation operating and pretax profit.

Exciting projects are still coming from APLN including the 3 new projects in Jakarta & Medan as well as the Pluit reclamation project. We have a BUY rating on APLN. Looking at the company’s reputation as a fast asset churner and excellent product delivery, we still see good prospects on the company. Moreover, APLN is still cheap trading at 9.8x-7.8x PE13-14F vs. industry’s 16.2x-12.2x.