PPRO

Contact our analyst Eka

Harvesting the landbank, 31% upside. BUY
​14th November 2017
Price Rp206
Target price Rp270

2018, A Harvesting Year

• 2018 24 projects can be harvested, up from 14 in 2017.
• We expect pre-sales to grow 16% to IDR. 3.6 trillion in 2018F.

Developing the landbank

• In 2018 PPRO will focus on developing existing 127ha landbank.
• & add up to 200 – 300 ha by the end of 2017.

Spin off and IPO for Hospitality

• PPRO plans to IPO their hospitality segment in 2020 or 2021.
• Before that, PPRO will strengthen the hospitality segment by expanding to more hotels and commercial properties

Valuation: TP 270, Upside 31% BUY

• We have a one year target price for PPRO of IDR. 270, offering investors a potential return of 31%.
• This would mean the stock trading​at 29x 2017F PE .
• ​We recommend BUY.

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