(APLN, Rp440, Buy, TP: Rp600)
APLN did a topping off of Baywalk Mall, a 54,500m2 new mall development located within the company’s Green Bay Pluit superblock project in North Jakarta. The mall will start commercially in Oct13, with ready tenant that now has reached 81% of the occupancy. Major names such as Ace Home Centre, Cinema XXI, Farmers Market and Gramedia Group will join as the anchor tenants. The company soon will also release name for its Department Store space.
Baywalk mall is an investment project that expected to add recurring income contribution for the company. In 2013, since it will only open in Oct, the contribution remains minimal around 5% of total recurring income (Recurring income is 18% of total revenue in 13F). However going forward the project contribution is increasingly important. The traffic is captured with total unit part of the Green Bay superblock project totaling 9,300 unit. This is not to mention market surrounding Pluit area. Note that APLN is also expanding the Green Bay pluit project through land reclamation with total potential development of 450ha. We view Baywalk mall can be key land mark of the whole development master plan. APLN is also operating another mall in Pluit area, called Emporium Pluit mall, with 100% occupancy rate and known for its highest traffic among other commercial malls in the area.
APLN continues expanding its recurring income contribution. Aside of the mall development, the company is also venturing in hotel business in few cities with total 800rooms to date. The company expect to triple of the total number of room in few years. We see margin acceleration in APLN as operation reaches its maturity phase, thus expanding ROAE. At this stage, APLN’s recurring income enjoys around 63% of GPM vs. 44% consolidated.
We have BUY rating on APLN at TP of Rp600/share, pegging it at 11.8x PE 2013. We remain to see APLN undervalued among peers in the universe that now trading at PE 15.4x. A re-rating to the construction valuation is valid given similarly fast churning business model. The 21 new projects post the IPO should alleviate concern over growth sustainability ahead. APLN is now trading at PE13 8.7x
0 komentar:
Posting Komentar