TIDMJDS TIDMJAR
RNS Number : 1514M
Jardine Strategic Hldgs Ltd
27 July 2017
To: Business Editor 27th July 2017
For immediate release
PT Astra International Tbk
2017 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
Neil M McNamara (852) 2843 8227
Brunswick Group Limited
Karin Wong (852) 3512 5077
27th July 2017
PT ASTRA INTERNATIONAL TBK
2017 FIRST HALF FINANCIAL STATEMENTS
Highlights
-- Net earnings per share up 31% at Rp231
-- Increased market share for both cars and motorcycles
-- Positive contribution from Permata Bank
-- Strong recovery in coal prices benefited heavy equipment and mining contracting volumes
-- Agribusiness improved with higher crude palm oil prices and production
"Most of the Group's businesses performed well in the first half
of 2017. For the remainder of this year, the Group is expected to
continue to benefit from stable coal prices, although results may
be tempered by increasing competition in the car market and soft
demand in the motorcycle market."
Prijono Sugiarto
President Director
Group Results
6 months ended 30th June
----------------------------- -------------------------------------
2017 2016 Change
Rp bn Rp bn %
----------------------------- ----------- --------------- -------
Net revenue 98,031 88,208 11
----------------------------- ----------- --------------- -------
Net income* 9,357 7,116 31
----------------------------- ----------- --------------- -------
Rp Rp
----------------------------- ----------- --------------- -------
Net earnings per share 231 176 31
----------------------------- ----------- --------------- -------
As at 30th As at 31st Change
June 2017 December 2016 %
Rp bn Rp bn
----------------------------- ----------- --------------- -------
Shareholders' funds** 116,627 111,951 4
----------------------------- ----------- --------------- -------
Rp Rp
----------------------------- ----------- --------------- -------
Net asset value per share** 2,881 2,765 4
----------------------------- ----------- --------------- -------
* 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 six months ended 30th June 2017
and 2016 as well as the financial position as at 30th June 2017
have been prepared in accordance with Indonesian Financial
Accounting Standards and are unaudited. The financial position as
at 31st December 2016 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
During the first half of 2017, the overall wholesale market for
cars grew, although affected by discount pressure arising from
increasing competition. The market for motorcycles declined. The
Group's automotive businesses achieved improved market shares for
both cars and motorcycles. The results from Group's financial
services businesses improved with a return to profit by Permata
Bank. There were good performances from the Group's heavy equipment
and mining, as well as its agribusiness activities, as they
benefited from higher commodity prices.
Performance
The Group's consolidated net revenue for the period increased by
11% to Rp98.0 trillion, with higher revenues achieved in most of
its business segments.
The Group's net income was also higher at Rp9.4 trillion, an
increase of 31% from the comparable period last year.
The net asset value per share was Rp2,881 at 30th June 2017, 4%
higher than at the end of 2016.
Net cash, excluding the Group's financial services subsidiaries,
was Rp2.6 trillion, significantly lower compared with net cash of
Rp6.2 trillion at the end of 2016, mainly due to toll road, power
plant and property investments made during the first half of 2017.
The Group's financial services subsidiaries had net debt of Rp49.1
trillion, compared with Rp47.7 trillion at the end of 2016.
Business Activities
Net income attributable to shareholders by business segment was
as follows:
Net Income Attributable to Astra
International
------------------------------ -------------------------------------
6 months ended 30th June
------------------------------ -------------------------------------
2017 2016 Change
Rp bn Rp bn %
------------------------------ ----------- ----------- -----------
Automotive 4,200 3,864 9
------------------------------ ----------- ----------- -----------
Financial Services 2,035 1,253 62
------------------------------ ----------- ----------- -----------
Heavy Equipment and Mining 2,057 1,121 83
------------------------------ ----------- ----------- -----------
Agribusiness 832 631 32
------------------------------ ----------- ----------- -----------
Infrastructure and Logistics 110 139 (21)
------------------------------ ----------- ----------- -----------
Information Technology 55 73 (25)
------------------------------ ----------- ----------- -----------
Property 68 35 94
------------------------------ ----------- ----------- -----------
Attributable Net Income 9,357 7,116 31
------------------------------ ----------- ----------- -----------
Automotive
Net income from the Group's automotive division increased by 9%
to Rp4.2 trillion. This was largely due to higher car sales, which
continued to benefit from new model introductions including those
in the second half of 2016, although price competition
increased.
The wholesale market for cars increased marginally to 534,000
units. Astra's car sales were 9% higher at 298,000 units, resulting
in an increase in market share from 51% to 56%. The Group launched
one new model and four revamped models during the period.
The wholesale market for motorcycles decreased by 9% to 2.7
million units. Astra Honda Motor's domestic sales fell 7% to 2.0
million units, resulting in its market share rising from 73% to
74%. The Group launched six new models and eleven revamped models
during the period.
Net income of Astra Otoparts, the Group's component business,
increased 30% to Rp198 billion, mainly due to higher earnings
contributions from its joint venture and associate companies.
Financial Services
Net income from the Group's financial services division
increased 62% to Rp2.0 trillion, with improved contributions from
most of its financial services businesses.
The Group's consumer finance businesses saw an 8% increase in
the aggregate amount financed, including amounts financed through
joint bank financing without recourse, to Rp38.6 trillion.
Car-focused Astra Sedaya Finance reported a 6% increase in net
income at Rp455 billion, while Toyota Astra Financial Services
recorded a stable profit of Rp155 billion. Motorcycle-focused
Federal International Finance's net income was 15% higher at Rp930
billion, benefiting from Honda's improved market share and loan
product diversification.
The aggregate amount financed through the Group's heavy
equipment-focused finance operations increased by 68% to Rp3.2
trillion. Net income at Surya Artha Nusantara Finance, which
specialises in small and medium size heavy equipment financing, was
lower at Rp29 billion.
Astra's 44.6%-held Permata Bank reported a net income of Rp621
billion compared with a net loss of Rp836 billion in the same
period in 2016. The Bank's gross non-performing loan ratio declined
from 8.8% at the end of 2016 to 4.7% at 30th June 2017, while its
net non-performing loan ratio also declined from 2.2% to 1.8%. The
improved performance of Permata Bank was mainly driven by an
improvement in asset quality and a planned sale of a portfolio of
its non-performing loans. In June 2017, the Bank completed its
Rp3.0 trillion rights issue, which was fully subscribed.
Asuransi Astra Buana, the Group's general insurance company,
reported net income 24% higher at Rp503 billion, primarily due to
higher underwriting and investment income.
During the period, the Group's life insurance joint venture,
Astra Aviva Life, acquired some 123,000 new individual life
insureds and 224,000 new participants for its corporate employee
benefits programmes, bringing the respective totals to 304,000 and
652,000 people being insured at the end of the first half of
2017.
Heavy Equipment and Mining
The net income contribution from the Group's heavy equipment and
mining division increased by 83% to Rp2.1 trillion.
United Tractors, which is 59.5%-owned, reported net income 85%
higher at Rp3.4 trillion, mainly due to improved performance of its
construction machinery, mining contracting and mining operations,
all of which benefited from improved coal prices.
In its construction machinery business, Komatsu heavy equipment
sales were up 69% at 1,751 units, while parts and service revenues
were also higher. The mining contracting operations of Pamapersada
Nusantara recorded a 4% increase in coal production at 52 million
tonnes, while overburden removal was 6% higher at 360 million bank
cubic metres. United Tractors' mining subsidiaries reported 18%
lower coal sales at 3.6 million tonnes.
General contractor Acset Indonusa, a 50.1% subsidiary of United
Tractors, reported net income up 95% at Rp64 billion, with Rp7.1
trillion in new contracts secured during the period, compared with
Rp2.4 trillion secured in the first half of 2016.
The Group's 25%-owned Bhumi Jati Power, which is constructing
two 1,000 MW power plants in Central Java, is scheduled to start
commercial operations in 2021. This build, operate and transfer
project is expected to cost approximately US$4.2 billion.
Suprabari Mapanindo Mineral, an 80%-owned coking coal company in
Central Kalimantan is expected to start production by the end of
2017.
Agribusiness
Net income from the Group's agribusiness division increased by
32% to Rp832 billion.
Astra Agro Lestari, which is 79.7%-owned, reported net income of
Rp1.0 trillion, up from Rp792 billion in the first half of 2016,
due to improved revenue from higher crude palm oil prices and
increased production. Average crude palm oil prices achieved were
16% higher at Rp8,536/kg, while sales of crude palm oil and its
derivatives were 10% higher at 833,000 tonnes compared to the same
period last year.
Infrastructure and Logistics
Net income from the Group's infrastructure and logistics
division decreased by 21% to Rp110 billion, mainly due to initial
losses arising from the operational commencement of the
Cikopo-Palimanan toll road and lower earnings from its water
utility business.
The 72km Tangerang-Merak toll road, operated by 79.3%-owned
Marga Mandalasakti, saw traffic volumes increase by 4% to 24
million vehicles. Construction continues at the wholly-owned 41km
Jombang-Mojokerto toll road, where 20km is already operational.
In May 2017, the Group acquired the remaining 60% interest in PT
Baskhara Utama Sedaya, which owns 45% of the fully operational
116km Cikopo-Palimanan toll road. The Group acquired its initial
40% interest in January 2017. The total acquisition cost of the
Group's ownership of PT Baskhara Utama Sedaya is approximately Rp5
trillion.
In May 2017, the Group also increased its stake in the 73km
Semarang-Solo toll road from 25% to 40%. Along with its 40% stake
in the 11km Kunciran-Serpong toll road and a 25% stake in the 40km
Serpong-Balaraja toll road, both of which are greenfield, the
Group's total interest in toll roads amounts to 353km.
PAM Lyonnaise Jaya, which operates the western Jakarta water
utility system, experienced a 3% lower sales volume at 78 million
cubic metres.
Serasi Autoraya's net income increased by 82% to Rp80 billion,
due to higher net margins in its car leasing and rental business,
despite a 5% decline in vehicles under contract.
Information Technology
Net income from the Group's information technology division was
25% lower at Rp55 billion.
Astra Graphia, which is 76.9%-owned, reported a 25% decrease in
net income to Rp72 billion, mainly due to lower revenue from its IT
solutions business.
Property
Net income from the Group's property division at Rp68 billion
was 94% higher, mainly due to higher recognised development
earnings on its Anandamaya Residences, project which is scheduled
for completion in 2018.
Prospects
Most of the Group's businesses performed well in the first half
of 2017. For the remainder of this year, the Group is expected to
continue to benefit from stable coal prices, although concerns
remain over increasing competition in its car business and soft
demand in the motorcycle market.
Prijono Sugiarto
President Director
27th July 2017
- end -
For further information, please contact:
PT Astra International Tbk
Pongki Pamungkas, Chief of Corporate Communication, Social
Responsibility & Security
Tel: + 62 - 21 - 6530 4956
This information is provided by RNS
The company news service from the London Stock Exchange
END
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