The Fed increased its rate, domestic economic growth has
fallen
In 2014 the economic growth of
indonesia is at 5.02 %. There is a significant decline in economic growth
compared to its growth in 2013 which is at 5.8 %. the decline of exchange
currency rupiah to US dollar may possibly be the biggest factor to the slower
economic growth. As the fed has rised its fund rate, the foreign investor drawn
their money and invest it back to america. The central bank has increased its
rate to fight against inflation rate as the price level was starting to climb.
More than 30 % of government
bond’s is owned by investor from oversea and indonesia used open market system
such as floating exchange rate based on foreign exchange market. So when the
investor from oversea sold their bonds and transferred their fund to US market
the currency will fall and the price of good has rised as among of industries
in indonesia still need to import goods for producing goods.
Based on forecast of the world
bank the growth will be at 5.2 % in 2015. On other hand the government has
target to attain 5.6 % growth in 2015. They plan to start various
infrastructure project in the second semester in 2015 and they believed that
its project will be able to drive the economic growth.
The industry which is related
government’s main plan of development predicted will incerase significantly
include the property development and operation. Healthcare is one of
prospective segment too in 2015 as the government has improved their social
security with several programs such as BPJS, Kartu Indonesia sehat and etc.
Real estate industry
According to BPS the monthly
average expenditure per capita for housing and household in 2013 slightly
increase at 7 % compared to 2012. It may indicate that real estate market is
still stable and the demand for property is still growing.
Company analysis : High quality product in strategic place
Lippo karawaci is owned by
Pacific Asia Holdings Ltd with more than 18 % of total share as the biggest
share holder. The company is founded by James riyadi, one of the richest man in
indonesia.
In 2013 the revenue increases 8.2
% up than 2012. It is lower than revenue growth in 2012 which is at 47 %. The
healthcare segment is the key driver of revenue growth, its revenue
contribution is at 38 % of total revenue.
According to audited annual
report, the apartment sub segment of Large scale integrated development Segment
is contributing the biggest part of total revenue.
In healthcare, there is siloam
hospitals which operates in many big cities in indonesia. Meanwhile, in
apartments sub segment, the company has
saint moritz apartment as the one of its reputable brand in apartment market.
Meanwhile, the gross profit
margin in 2013 is 48 % of revenue, it has been improved compared to gross
margin in 2012 which is at 47.3%.
According to audited annual
report of 2013, the biggest part of total asset is inventory which is at 68 %
of total asset. The capitalized borrowing costs of inventory are about IDR
989.553 million in 2013 and IDR 373.269
in 2012. The majority part of the inventory is land under development which is
about 54 % of inventory.
The company issued a global bonds
amounting to USD 130,000 thousands in january 2013 and issued amounting to
119,229 thousands in april of 2013. The interest cost of both are capitalized
at inventory part.
Majority of its land bank is
located at Jakarta area, the company has many project in jakarta and across
indonesia as shown at the Table of project.
The company concerns to develop high quality project at the
strategic place, this strategy obviously needs expensive cost. Its brands such
as saint moritz apartment,kemang village,aryaduta hotel and etc aims middle up
customer.
In conclusion, the company has
reputable brands in each segment in each market. There are various on goin
projects in 2014. The company expects to get better performance in the future.
Forecast
The company is expected improve
its margin include gross profit margin. and the most important thing the revenue
growth will be risen more in the future.
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| annual report 2013 |
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| annual report 2013 |
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| annual report 2013 |
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| annual report 2013 |
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| annual report 2013 |
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| annual report 2013 |
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| source : annual report 2013 |
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