Flashnote – Surya Semesta Internusa (SSIA) – Strong 9M’12 Result

Flashnote – Surya Semesta Internusa (SSIA) – Strong 9M'12 Result

PT Surya Semesta Internusa Tbk (SSIA) published its 9M'12 financial result today. The following are our comments on it:

• 9M'12 revenue grew 22.4% YoY to Rp2.66 trillion. However, net income grew by 192.4% YoY to Rp551 billion, which mainly driven by its industrial land segment. This year, SSIA experienced lower land sales volume but with stronger ASP growth and flattish land costs.

• On quarterly basis, 3Q'12 revenue is considerably flat compared to 2Q'12's. Yet, the bottom line still grew by 20% QoQ.

• Overall SSIA's 9M'12 performance surpasses our estimate. The Company's 9M'12 revenue and net profit achieve 81% and 82.9% of our full year forecast.

• The Company registered strong 1H'12 result which is inline with our estimate, forming 51.6% and 50% of our revenue and net profit forecast respectively.

• As the end of 2012 is near, we are about to switch our valuation year base to 2013. In the mean time, we still maintain our positive stance on SSIA.

• In addition, today SSIA's shareholders approved company's plan to invest in 20.5% Cikampek – Palimanan toll road. We believe that this project will augment SSIA's value in long term, given the sustainable revenue characteristic of toll road business.

Source Listri Adistri
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