TIDMJDS TIDMJAR
RNS Number : 8777V
Jardine Strategic Hldgs Ltd
26 July 2018
To: Business Editor 26th July 2018
For immediate release
PT Astra International Tbk
2018 First Half 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
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
Karin Wong (852) 3512 5077
26th July 2018
PT ASTRA INTERNATIONAL TBK
2018 FIRST HALF FINANCIAL STATEMENTS
Highlights
-- Net earnings per share up 11% at Rp257
-- Strong motorcycle market share maintained, while car market
share declined
--Higher coal prices benefited heavy equipment, mining
contracting and mining volumes
--Lower crude palm oil prices adversely impacted
agribusiness
"The Group's performance for the rest of the year is expected to
be satisfactory, supported by ongoing growth in the Indonesian
economy and stable coal prices, although there are concerns over
competitive pressures in the car market and weak crude palm oil
prices."
Prijono Sugiarto
President Director
Group Results
6 months ended 30th June
2018 2017* Change
Rp bn Rp bn %
----------- ---------------- -------
Net revenue 112,554 98,031 15
----------- ---------------- -------
Net income 10,384 9,340 11
----------- ---------------- -------
Rp Rp
----------- ---------------- -------
Net earnings per share 257 231 11
----------- ---------------- -------
As at 30th As at 31st Change
June 2018 December 2017* %
Rp bn Rp bn
----------- ---------------- -------
Shareholders' funds 127,721 123,780 3
----------- ---------------- -------
Rp Rp
----------- ---------------- -------
Net asset value per share 3,155 3,058 3
----------- ---------------- -------
* Restated due to implementation of PSAK No. 69: Agriculture
The financial results for the six months ended 30th June 2018
and 2017 as well as the financial position as at 30th June 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's net earnings were higher during the first half,
particularly due to increased contribution from its heavy equipment
and mining businesses and an improved contribution from its
financial services division, which more than offset lower
contribution from its agribusiness and infrastructure
operations.
Performance
The Group's consolidated net revenue for the period increased by
15% to Rp112.6 trillion, with higher revenues achieved mainly in
its heavy equipment and mining businesses.
The Group's net income was Rp10.4 trillion, 11% higher compared
with the similar period last year.
The net asset value per share was Rp3,155 at 30th June 2018, 3%
higher than at the prior year end.
Net debt excluding the Group's financial services subsidiaries
was Rp6.6 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 Rp47.9 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
6 months ended 30th June
-------------------------------------
2018 2017* Change
Rp bn Rp bn %
------------ -------- -------------
Automotive 4,215 4,200 0
------------ -------- -------------
Financial Services 2,142 2,035 5
------------ -------- -------------
Heavy Equipment, Mining, Construction
and Energy 3,282 2,057 60
------------ -------- -------------
Agribusiness 625 815 (23)
------------ -------- -------------
Infrastructure and Logistics 4 110 (96)
------------ -------- -------------
Information Technology 68 55 24
------------ -------- -------------
Property 48 68 (29)
------------ -------- -------------
Attributable Net Income 10,384 9,340 11
------------ -------- -------------
* Restated due to implementation of PSAK No. 69: Agriculture
Automotive
Net income from the Group's automotive division was flat at
Rp4.2 trillion. Increased earnings in the motorcycle operations and
automotive components business were more than offset by lower
earnings in the car operations.
The wholesale market for cars was 4% higher in the period at
554,000 units. Astra's car sales, however, were 10% lower at
268,000 units as a result of increased competition, which resulted
in a decline in market share from 56% to 48%. The Group launched 12
new models and 4 revamped models during the period.
The wholesale market for motorcycles increased by 11% to 3
million units. Astra Honda Motor's domestic sales increased by 11%
to 2.2 million units, with its market share maintained at 74%. The
Group launched 4 new models and 11 revamped models during the
period.
Astra Otoparts, the Group's automotive components business,
reported net income 4% higher at Rp206 billion, mainly due to
increased revenues from its original equipment manufacturing and
replacement market sales.
Financial Services
Net income from the Group's financial services division
increased by 5% to Rp2.1 trillion, with an improved contribution
from its consumer finance businesses.
During first half of 2018, the Group's consumer finance
businesses saw a 6% decrease in the amount financed to Rp39.7
trillion, mainly due to a reduction in amount financed in the low
cost car segment. Net income contribution from the Group's
car-focused finance companies increased by 2% to Rp512 billion, as
a result of lower provisioning. Net income contribution from
motorcycle-focused Federal International Finance was 20% higher at
Rp1.1 trillion, due to a larger loan portfolio.
The amount financed through the Group's heavy equipment-focused
finance operations decreased by 30% to Rp2.2 trillion, mainly due
to reduced lending to small and medium-sized companies.
Permata Bank, in which Astra holds a 44.6% interest, reported
net income of Rp275 billion compared to Rp621 billion in the
equivalent period last year, a decrease of 56%. Permata Bank's
results in the first half of 2017 benefited from a one-off gain on
the sale of non-performing loans. The bank's gross and net
non-performing loan ratios at 30th of June 2018 were 4.3% and 1.5%,
respectively.
In May 2018, Permata Bank divested its 25% shareholding in Astra
Sedaya Finance to the Group for Rp2.8 trillion, in order to
strengthen the bank's capital position and maximize its capital
allocation for lending.
Asuransi Astra Buana, the Group's general insurance company,
reported net income 2% lower at Rp495 billion, due to lower
investment income. During the period, the Group's life insurance
joint venture, Astra Aviva Life, acquired more than 138,000 new
individual life customers and 507,000 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 60% to Rp3.3
trillion.
United Tractors, which is 59.5%-owned, reported net income which
was 60% higher at Rp5.5 trillion, mainly due to improved
performances in its construction machinery, mining contracting and
mining operations, as a result of increased coal prices.
Within United Tractors' construction machinery business, Komatsu
heavy equipment sales were up 37% at 2,400 units, while parts and
service revenues were also higher. The mining contracting
operations of wholly-owned Pamapersada Nusantara recorded 8% higher
coal production at 56 million tonnes and 23% higher overburden
removal volume at 445 million bank cubic metres. United Tractors'
mining subsidiaries reported 22% higher coal sales at 4.4 million
tonnes.
During the first half of 2018, Suprabari Mapanindo Mineral,
United Tractors' 80.1%-owned coking coal company which became
operational in late 2017, achieved coal sales of 342,000
tonnes.
General contractor Acset Indonusa, 50.1% subsidiary of United
Tractors, reported a 14% higher net income at Rp73 billion, due to
higher revenue arising from an increased project pipeline. Rp300
billion of new construction projects were secured during the
period.
Bhumi Jati Power, 25%-owned by United Tractors, is in the
process of constructing two 1,000MW power plants in Central Java,
which are scheduled to start commercial operations in 2021.
Agribusiness
Net income from the Group's agribusiness division was down 23%
at Rp625 billion.
Astra Agro Lestari, which is 79.7%-owned, reported a 23% decline
in net income at Rp784 billion. This decline was primarily due to a
fall in crude palm oil prices which were 8% lower at Rp7,893/kg
compared to the first half of 2017. This more than offset a 19%
improvement in crude palm oil and derivatives sales at 992,000
tonnes.
Infrastructure and Logistics
The Group's infrastructure and logistics division reported a net
income of Rp4 billion, compared with a net profit Rp110 billion in
the first half of 2017. Initial losses from the Cikopo-Palimanan
toll road acquired in the first half of 2017 and newly operational
Semarang-Solo toll road more than offset improved earnings from the
Tangerang-Merak toll road and Serasi Autoraya.
The Group's portfolio of toll road interests totals 353km, of
which 269km is operational. Toll revenue from the mature 72.5km
Tangerang-Merak toll road, operated by 79.3%-owned Marga
Mandalasakti, increased by 12% to Rp516 billion, while the
wholly-owned 40.5km Jombang-Mojokerto toll road, of which 39.6km
became fully operational in September 2017, recorded Rp97 billion
of toll revenue during the first half of 2018. Toll revenue from
the 45%-owned 116.8km Cikopo-Palimanan toll road increased by 13%
to Rp686 billion. The 40%-owned 72.6km Semarang-Solo toll road
recorded toll revenue of Rp117 billion, a 46% rise from the
comparable period last year, with 40.1km now in operation,
following the opening of the third section in September 2017.
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 39% to Rp111 billion,
primarily due to improved operating margins in its car leasing and
rental businesses. Its vehicles under contract rose 4% to 24,000
units.
Information Technology
Net income from the Group's information technology division was
24% higher at Rp68 billion.
Astra Graphia, which is 76.9%-owned, reported a 24% higher net
income at Rp88 billion due to increased revenue across its document
and information technology solutions and office service
businesses.
Property
The Group's property division reported a net profit of Rp48
billion in the first half of 2018 compared to net income of Rp68
billion in the prior year. This decline was due to lower
development earnings recognised from its Anandamaya Residences
project reflecting lower percentage completion in its final stages
of construction.
In April 2018, 50%-owned Astra Land Indonesia purchased a
3-hectare site in Jakarta's Central Business District, for
residential and commercial development. Together with the Group's
other property development projects, Arumaya in South Jakarta and
Asya in East Jakarta, the Group's land for property development now
totals 70 hectares.
Prospects
The Group's performance for the rest of the year is expected to
be satisfactory, supported by ongoing growth in the Indonesian
economy and stable coal prices, although there are concerns over
competitive pressures in the car market and weak crude palm oil
prices.
Prijono Sugiarto
President Director
26th July 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-
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END
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