TIDMJDS TIDMJAR
RNS Number : 4999F
Jardine Strategic Hldgs Ltd
29 October 2018
To: Business Editor 29th October 2018
For immediate release
PT Astra International Tbk
2018 Third 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
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
Karin Wong (852) 3512 5077
29th October 2018
PT ASTRA INTERNATIONAL TBK
2018 THIRD QUARTER FINANCIAL STATEMENTS
Highlights
Net earnings per share up 21% at Rp422
Higher motorcycle sales, while car sales declined
Higher coal prices continued to benefit heavy equipment, mining
contracting and mining revenue
Lower crude palm oil prices adversely impacted agribusiness
"We expect the Group to achieve satisfactory full year results,
notwithstanding concerns over competitive pressure in the car
market and weak crude palm oil prices."
Prijono Sugiarto
President Director
Group Results
9 months ended 30th September
2018 2017* Change
Rp bn Rp bn %
--------------------
Net revenue 174,881 150,225 16
-------------------- --------------- ------
Net income 17,073 14,159 21
-------------------- --------------- ------
Rp Rp
-------------------- --------------- ------
Net earnings per share 422 350 21
-------------------- --------------- ------
As at 30th September As at 31st Change
2018 December 2017* %
Rp bn Rp bn
-------------------- --------------- ------
Shareholders' funds 132,480 123,780 7
-------------------- --------------- ------
Rp Rp
-------------------- --------------- ------
Net asset value per share 3,272 3,058 7
-------------------- --------------- ------
* Restated due to implementation of PSAK No. 69: Agriculture
The financial results for the nine months ended 30th September
2018 and 2017 as well as the financial position as at 30th
September 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
Overall, the Group's net earnings were higher during the period,
due to increased contribution from its heavy equipment, mining,
construction and energy, financial services and automotive
segments, which more than offset a lower contribution from
agribusiness. While the depreciation of the Rupiah during the
period has led to margin pressure in the Group's manufacturing
operations, the impact has been offset by the Group's
commodity-related and export activities and foreign exchange
translation gains.
Performance
The Group's consolidated net revenue for the period increased by
16% to Rp174.9 trillion, with higher revenues achieved in most
segments, especially from heavy equipment, mining, construction and
energy.
The Group's net income was Rp17.1 trillion, 21% higher compared
with the same period last year.
The net asset value per share was Rp3,272 at 30th September
2018, 7% higher than at the prior year end.
Net cash excluding the Group's financial services subsidiaries
was Rp1.7 trillion, down from 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 Rp47.8 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
9 months ended 30th September 2018
--------------------------------------
2018 2017* Change
Rp bn Rp bn %
------------
Automotive 7,013 6,579 7
------------ ----------- -----------
Financial Services 3,452 2,948 17
------------ ----------- -----------
Heavy Equipment, Mining, Construction
and Energy 5,428 3,400 60
------------ ----------- -----------
Agribusiness 896 1,096 (18)
------------ ----------- -----------
Infrastructure and Logistics 112 (66) 270
------------ ----------- -----------
Information Technology 106 105 1
------------ ----------- -----------
Property 66 97 (32)
------------ ----------- -----------
Attributable Net Income 17,073 14,159 21
------------ ----------- -----------
* Restated due to implementation of PSAK No. 69: Agriculture
Automotive
Net income from the Group's automotive division was 7% higher at
Rp7.0 trillion, primarily due to higher motorcycle sales.
The wholesale market for cars was 7% higher in the period at
857,000 units. Astra's car sales, however, were 4% lower at 424,000
units as a result of increased competition, which resulted in a
decline in market share from 55% to 50%. The Group launched 17 new
models and six revamped models during the period.
The wholesale market for motorcycles increased by 9% to 4.7
million units. Astra Honda Motor's domestic sales increased by 9%
to 3.5 million units, with its market share stable at 75%. The
Group launched five new models and 16 revamped models during the
period.
Astra Otoparts, the Group's automotive components business,
reported net income which was 12% higher at Rp414 billion, 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 17% to Rp3.5 trillion, with an improved contribution
from its consumer finance businesses.
During the period, the Group's consumer finance businesses saw a
4% decrease in the amount financed to Rp60 trillion, mainly due to
a reduction in amount financed in the low cost car segment. The net
income contribution from the Group's car-focused finance companies
increased by 12% to Rp837 billion, as a result of lower
provisioning. The net income contribution from motorcycle-focused
Federal International Finance was 18% higher at Rp1.7 trillion,
reflecting a larger loan portfolio.
The amount financed through the Group's heavy equipment-focused
finance operations decreased by 28% to Rp3.8 trillion, mainly due
to reduced lending to small and medium-sized operations.
In September 2018, the Group and WeLab, a leading technology
enabler for consumer lending in China including Hong Kong,
announced the establishment of Astra WeLab Digital Arta, 60%-owned
by Astra, to offer mobile lending products to retail consumers and
provide financial technology solutions to enterprise customers.
Permata Bank, in which Astra holds a 44.6% interest, reported
net income of Rp494 billion, compared to Rp708 billion in the
equivalent period last year. Permata Bank's 2017 results benefited
from a one-off gain on the sale of non-performing loans. The bank's
gross and net non-performing loan ratios at the end of September
2018 were 4.8% and 1.7%, respectively.
Asuransi Astra Buana, the Group's general insurance company,
reported net income 2% higher at Rp764 billion, due to higher
investment and underwriting income. During the period, the Group's
life insurance joint venture, Astra Aviva Life, acquired more than
232,000 new individual life customers and 663,000 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 Rp5.4
trillion.
United Tractors, which is 59.5%-owned, reported 61% higher net
income at Rp9.1 trillion, mainly due to improved performances in
its construction machinery, mining contracting and mining
operations, all of which benefited from higher coal prices.
Within United Tractors' construction machinery business, Komatsu
heavy equipment sales rose 34% to 3,681 units, while parts and
service revenues were also higher. The mining contracting
operations of wholly-owned Pamapersada Nusantara recorded a 22%
increase in overburden removal volume at 717 million bank cubic
metres and 10% higher coal production at 90 million tonnes. United
Tractors' mining subsidiaries reported 15% growth in coal sales at
5.8 million tonnes, including sales of 526,000 tonnes of coking
coal by Suprabari Mapanindo Mineral, United Tractors' 80.1%-owned
coking coal company which became operational in late 2017.
General contractor Acset Indonusa, a 50.1% subsidiary of United
Tractors, reported an 18% decrease in net income at Rp91 billion.
Rp835 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 operation in 2021.
In August 2018, United Tractors' subsidiary, Danusa Tambang
Nusantara, signed a Conditional Share Sale Agreement to acquire a
95% stake in Agincourt Resources, which operates a gold mine in
North Sumatera, for approximately US$1.0 billion.
Agribusiness
Net income from the Group's agribusiness division was down 18%
at Rp896 billion.
Astra Agro Lestari, which is 79.7%-owned, reported an 18%
decline in net income at Rp1.1 trillion primarily due to a fall in
crude palm oil prices which were 8% lower at Rp7,639/kg. This more
than offset a 23% increase in crude palm oil and derivatives sales
to 1.6 million tonnes.
Infrastructure and Logistics
The Group's infrastructure and logistics division reported a net
income of Rp112 billion, compared to a Rp66 billion net loss in the
first nine months of 2017. This was mainly due to improved earnings
from the Tangerang-Merak toll road and Serasi Autoraya, as well as
the inclusion in the prior year's results of a one-off loss on the
disposal of the Group's 49% interest in PAM Lyonnaise Jaya.
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 11% to Rp793 billion, while the
wholly-owned 40.5km Jombang-Mojokerto toll road, of which 39.6km
became fully operational in September 2017, recorded Rp151 billion
of toll revenue during the first nine months of 2018. Toll revenue
from the 45%-owned 116.8km Cikopo-Palimanan toll road increased by
12% to Rp1.0 trillion. The 40%-owned 72.6km Semarang-Solo toll road
recorded toll revenue of Rp180 billion, a 44% 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 41% to Rp190 billion,
primarily due to improved operating margins in its car leasing and
rental businesses. Its vehicles under contract rose 1% to 22,800
units.
Information Technology
Net income from the Group's information technology division was
1% higher at Rp106 billion.
Astra Graphia, which is 76.9%-owned, reported 1% higher net
income of Rp138 billion due to increased revenue from all of its
businesses.
Property
The Group's property division reported 32% lower net profit of
Rp66 billion, due mainly to reduced development earnings recognised
from its Anandamaya Residences project as a result of lower
percentage completion in its final stages of construction.
The Group's other property development projects comprise Arumaya
in South Jakarta and Asya in East Jakarta.
Prospects
We expect the Group to achieve satisfactory full year results,
notwithstanding concerns over competitive pressure in the car
market and weak crude palm oil prices.
Prijono Sugiarto
President Director
29th October 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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