CTRA - Net profit reached IDR1.52 tn

Ciputra Development (CTRA) posted revenue at IDR7,2 tn (8.7%yoy) and net profit at IDR1,5 tn (50.3%yoy) in 9M22 period. On quarterly basis, top line grew at 5.4%qoq and declined 2.5%yoy, while net profit declined 11%qoq and 2.1%yoy (Source: Bisnis Indonesia) Comment: We believe 4Q22 performance will remains solid driven by several launches on the pipeline* and the remaining backlog that has been launched in previous quarter. We view 9M22 strong pre sales at +30.4% yoy which has reached 78% from 2022 target (68% in 9M21) should provide cushion for CTRA's 4Q22 earnings, aside from its stable occupancy rate in office assets and improving mall traffic post pre-Covid. Next year, mortgage rate hike might hampered demand. However, we expect its solid property projects which present in 34 cities will allow CTRA to diversify its product and target market, while at the same time provide more room to maintain pre-sales growth.