TIDMJDS TIDMJAR
RNS Number : 8071L
Jardine Strategic Hldgs Ltd
24 April 2018
To: Business Editor 24th April 2018
For immediate release
PT Astra International Tbk
2018 First Quarter Financial Statements
The following announcement was issued today by the Company's
75%-owned subsidiary, Jardine Cycle & Carriage Limited, which
holds 50.1% of PT Astra International Tbk.
For further information, please contact:
Jardine Matheson Limited
Neil M McNamara (852) 2843 8227
Brunswick Group Limited
Karin Wong (852) 3512 5077
24th April 2018
PT ASTRA INTERNATIONAL TBK
2018 FIRST QUARTER FINANCIAL STATEMENTS
Highlights
-- Net earnings per share down 2% at Rp123
-- Lower market share for cars and motorcycles
-- Higher coal prices benefited heavy equipment, mining contracting and mining volumes
-- Agribusiness net income down due to lower prices
"The Group is expected to continue benefiting from stable coal
prices, but in the car market, competitive pressures are likely to
intensify."
Prijono Sugiarto
President Director
Group Results
For the period ended 31st March
------------------------ ------------------------------------
2018 2017* Change
Rp bn Rp bn %
------------------------ ------------- ------------ -------
Net revenue 55,822 48,780 14
------------------------ ------------- ------------ -------
Net income** 4,980 5,078 (2)
------------------------ ------------- ------------ -------
Rp Rp
------------------------ ------------- ------------ -------
Net earnings per
share 123 125 (2)
------------------------ ------------- ------------ -------
As at 31st As at 31st Change
March 2018 December %
Rp bn 2017*
Rp bn
------------------------ ------------- ------------ -------
Shareholders' funds*** 128,973 123,780 4
------------------------ ------------- ------------ -------
Rp Rp
------------------------ ------------- ------------ -------
Net asset value per
share*** 3,186 3,058 4
------------------------ ------------- ------------ -------
* Restated due to implementation of PSAK No. 69: Agriculture
** Net income is profit attributable to owners of the parent,
i.e. Astra International shareholders.
*** Shareholders' funds and net asset value per share are based
on equity attributable to owners of the parent.
The financial results for the three months ended 31st March 2018
and 2017 as well as the financial position as at 31st March 2018
have been prepared in accordance with Indonesian Financial
Accounting Standards and are unaudited. The financial position as
at 31st December 2017 has been prepared in accordance with
Indonesian Financial Accounting Standards and audited in accordance
with the auditing standards established by the Indonesian Institute
of Certified Public Accountants.
PRESIDENT DIRECTOR'S STATEMENT
Overview
The Group experienced lower results in some of its business
segments, particularly in automotive and agribusiness, which more
than offset the increased performance from heavy equipment, mining,
construction and energy.
Performance
The Group's consolidated net revenue for the period increased by
14% to Rp55.8 trillion, with higher revenues achieved mainly in its
heavy equipment and mining and automotive businesses.
The Group's net income was Rp5.0 trillion, 2% lower compared
with the same period last year.
The net asset value per share was Rp3,186 at 31st March 2018, 4%
higher than at the prior year end.
Net debt, excluding the Group's financial services subsidiaries,
was Rp2.4 trillion compared with net cash of Rp2.7 trillion at 31st
December 2017, due mainly to the Group's toll road and GO-JEK
investments and capital expenditure in its mining contracting
business. The Group's financial services subsidiaries had net debt
of Rp44.8 trillion, compared with Rp46.1 trillion at the end of
2017.
Business Activities
Net income attributable to shareholders by business segment was
as follows:
Net Income Attributable
to Astra International
------------------------------ ------------------------------
For the period ended 31st
March
------------------------------ ------------------------------
2018 2017* Change
Rp bn Rp bn %
------------------------------ ------------ ------- -------
Automotive 2,109 2,288 (8)
------------------------------ ------------ ------- -------
Financial Services 1,060 1,124 (6)
------------------------------ ------------ ------- -------
Heavy Equipment, Mining,
Construction and Energy 1,518 902 68
------------------------------ ------------ ------- -------
Agribusiness 283 629 (55)
------------------------------ ------------ ------- -------
Infrastructure and Logistics (23) 67 (134)
------------------------------ ------------ ------- -------
Information Technology 27 26 4
------------------------------ ------------ ------- -------
Property 6 42 (86)
------------------------------ ------------ ------- -------
Attributable Net Income 4,980 5,078 (2)
------------------------------ ------------ ------- -------
* Restated due to implementation of PSAK No. 69: Agriculture
Automotive
Net income from the Group's automotive division was down by 8%
at Rp2.1 trillion, mainly due to increased competition in the car
segment.
The wholesale market for cars grew by 3% at 292,000 units.
Astra's car sales, however, were 12% lower at 142,000 units due to
the impact of intense competition which resulted in a decline in
market share from 57% to 49%. The Group launched seven new models
and two revamped models during the period.
The wholesale market for motorcycles increased by 4% to 1.5
million units. Astra Honda Motor's domestic sales were flat at 1.1
million units, mainly due to inventory management ahead of several
key model launches, which resulted in its market share decreasing
from 77% to 73%. The Group launched one new model and five revamped
models during the period.
Astra Otoparts, the Group's components business, reported net
income which was 1% lower at Rp146 billion, despite an 11% increase
in revenue. The decline in net income was mainly due to reduced
contributions from its joint venture and associate companies, which
were impacted by forex translation losses.
Financial Services
Net income from the Group's financial services division
decreased by 6% to Rp1.1 trillion, due to a lower contribution from
Permata Bank.
The Group's consumer finance businesses saw a 5% decrease in the
amount financed to Rp19.7 trillion. The contribution from the
Group's car-focused finance companies decreased by 17% to Rp225
billion mainly due to increased loan loss provisions in the low
cost car segment. Motorcycle-focused Federal International
Finance's net income was up 22% at Rp542 billion primarily due to a
larger loan portfolio.
The amount financed through the Group's heavy equipment-focused
finance operations decreased by 35% to Rp846 billion, mainly due to
reduced lending to small and medium-sized borrowers.
Permata Bank, in which Astra holds a 44.6% interest, reported
net income of Rp164 billion compared to Rp453 billion recorded in
the first quarter last year. The results of the first quarter last
year benefited from a one-off gain on the sale of non-performing
loans. Excluding this one-off gain, the bank's net income would
have increased mainly driven by lower loan impairment costs which
fell from Rp670 billion in the first quarter last year to Rp465
billion in this first quarter. The bank's gross and net
non-performing loan ratios at the end of March 2018 were relatively
stable at 4.6% and 1.7%, respectively.
Asuransi Astra Buana, the Group's general insurance company,
reported net income 15% higher at Rp247 billion, due to increased
investment income. During the period, the Group's life insurance
joint venture, Astra Aviva Life, acquired more than 78,000 new
individual life customers and 411,000 new participants for its
corporate employee benefits programmes.
Heavy Equipment, Mining, Construction and Energy
Net income from the Group's heavy equipment, mining,
construction and energy division increased by 68% to Rp1.5
trillion.
United Tractors, which is 59.5%-owned, reported net income 69%
higher at Rp2.5 trillion. The increase was mainly due to improved
performances in its construction machinery and mining contracting
businesses, as well as its mining operations, as a result of
increased coal prices.
In its construction machinery business, Komatsu heavy equipment
sales were up 38% at 1,171 units, while parts and service revenues
were also higher. The mining contracting operations of Pamapersada
Nusantara recorded a 6% higher coal production at 26.5 million
tonnes and 22% higher overburden removal at 207 million bank cubic
metres. United Tractors' mining subsidiaries reported 36% higher
coal sales at 2.6 million tonnes.
In the first quarter of 2018, Suprabari Mapanindo Mineral,
United Tractors' 80.1%-owned coking coal company which became
operational in late 2017, achieved coal sales of 111,000
tonnes.
General contractor Acset Indonusa, a 50.1% subsidiary of United
Tractors, reported net income up 27% at Rp39 billion due to higher
revenue, mainly from its infrastructure construction projects.
Agribusiness
Net income from the Group's agribusiness division was down 55%
at Rp283 billion.
Astra Agro Lestari, which is 79.7%-owned, reported net income
55% lower at Rp355 billion, primarily due to lower crude palm oil
prices. Achieved average crude palm oil prices were 12% lower at
Rp7,855/kg, while sales of crude palm oil and its derivatives were
17% higher at 480,000 tonnes.
Infrastructure and Logistics
The Group's infrastructure and logistics division reported a net
loss of Rp23 billion, compared with a net profit Rp67 billion in
the first quarter of 2017, as results were affected by initial
losses on the Cikopo-Palimanan toll road acquired in the first half
of 2017.
The Group's portfolio of toll road interests totals 353km, of
which 269km is operational. At the mature 72.5km Tangerang-Merak
toll road, operated by 79.3%-owned Marga Mandalasakti, toll revenue
increased by 14% to Rp253 billion. At the wholly-owned 40.5km
Jombang-Mojokerto toll road, 39.6km became fully operational in
September 2017 and recorded Rp39 billion of toll revenue during the
first quarter of 2018. Toll revenue at the 45%-owned 116.8km
Cikopo-Palimanan toll road increased by 4% to Rp296 billion. At the
40%-owned 72.6km Semarang-Solo toll road, of which 40.1km is now in
operation, toll revenue was Rp50 billion or 36% higher than the
comparable period last year.
The Group also has a 40% stake in the 11.2km Kunciran-Serpong
toll road and a 25% stake in the 39.8km Serpong-Balaraja toll road,
both of which are under development.
Serasi Autoraya's net income increased by 45% to Rp58 billion,
due to higher net margins in its car leasing and rental businesses,
despite a 4% decline in vehicles under contract.
Information Technology
Net income from the Group's information technology division was
4% higher at Rp27 billion.
Astra Graphia, which is 76.9%-owned, reported net income higher
at Rp35 billion due to higher revenues across all its business
segments.
Property
The Group's property division reported a net income of Rp6
billion compared to net income of Rp42 billion in the prior year.
This was primarily due to lower development earnings recognised
from its Anandamaya Residences project, reflecting lower percentage
completion in the final stages of the project.
Arumaya, the Group's 60%-held residential development project
located in South Jakarta, commenced marketing in March 2018 and is
scheduled for completion in 2022.
50%-owned Astra Land Indonesia, which owns 67% of Astra Modern
Land, is in the process of developing a 67-hectare site in East
Jakarta and started marketing activities for the first two clusters
of landed houses during the first quarter of 2018.
Corporate Action
In February 2018, the Group invested US$150 million for a
minority stake in GO-JEK, Indonesia's leading multi-platform
technology group, which provides access to a wide range of services
from transportation and payments to food delivery, logistics and
other on-demand services.
Prospects
The Group is expected to continue benefiting from stable coal
prices, but in the car market, competitive pressures are likely to
intensify.
Prijono Sugiarto
President Director
24th April 2018
For further information, please contact:
PT Astra International Tbk
Pongki Pamungkas, Chief of Corporate Communication, Social
Responsibility & Security
Tel: + 62 - 21 - 6530 4956
-end-
This information is provided by RNS
The company news service from the London Stock Exchange
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