PT Kawasan Industri Jababeka Tbk.

We expect a 30%-35% rebound in consolidated sales in 2021 to Indonesian rupiah (IDR) 1.15 trillion-IDR1.25 trillion (including sale at joint venture [JV] Kendal Industrial Park) driven by continued momentum in land sales. As of end June 2021, Jababeka achieved 42%-46% of our full-year sales estimates. The company's domestic and foreign land sales have resumed since the second half of 2020, although the transaction volume remains below pre-pandemic level. While land sale transactions to foreign buyers are less frequent compared to domestic sales, the size of such transactions is typically larger. Sales to foreign buyers in the first half of 2021 account for about two-third of total land sales by value. In our view, execution risks is likely to persist

...PT Kawasan Industri Jababeka Tbk.'s (Jababeka) EBITDA interest coverage is unlikely to strengthen beyond 1.4x-1.6x in 2021 and 2022. The company's EBITDA is likely to remain subdued in this period because muted marketing sales in 2020 will drag revenue recognition for the next two years. Jababeka had a 48% decline in marketing sales in 2020, more than the average of 30%-35% for other rated domestic developers, as land sales to overseas buyers were disrupted by the pandemic. We expect a 30%-35% rebound in consolidated sales in 2021 to Indonesian rupiah (IDR) 1.15 trillion-IDR1.25 trillion (including sale at joint venture [JV] Kendal Industrial Park) driven by continued momentum in land sales. As of end June 2021, Jababeka achieved 42%-46% of our full-year sales estimates. The company's domestic and foreign land sales have resumed since the second half of 2020, although the transaction volume remains below pre-pandemic level. While land sale transactions to foreign buyers are less frequent...

Full Report