Slowing Demand No Drag on Jababeka’s Rp 2t Sales Target

Jababeka, an industrial estate company, will keep its full-year marketing sales target unchanged this year despite slowing demand.

In a statement on Thursday, the company said it would maintain its Rp 2 trillion ($ 176 million) target for sales of property units that are still under construction.

“Strong sales from Jababeka’s residential and commercial sector in the remaining four months of 2013 would offset any potential decline in industrial land sales,” the company said in the statement.

The company builds residential and commercial sector projects including high-rise buildings, shop houses, housing complexes, and shopping centers, and targets the medium- and upper-class segments.

In the January to August period, the company posted Rp 1.24 trillion in real estate sales, up 44 percent from the same period last year.

Industrial development in Cikarang, West Java, and Cilegon, Banten, made up 70 percent of the total sales for the period, while residential and commercial sales contributed the remainder.

During the first half of this year, the company posted Rp 1.51 trillion in revenue, more than double its Rp 730 billion in the first half last year. Its net profit grew by 64 percent to Rp 337 billion in the first half this year.

In a report released earlier this month, Melvina Wildasari, an analyst with Trimegah Securities said Jababeka remains one of the top stocks selections in the property sector.

“In our long-term perspective, Jababeka has the most sustainable earnings stemming from its infrastructure, such as its power plant and dry port, compared to other industrial estate players,” Melvina said.

The company is currently building its second 130 megawatt gas-fired power plant.

Recurring income will make up about half of the company’s revenue for the year.

Shares of Jababeka fell 1.8 percent to Rp 270 on Friday, while the main stock index lost 1.9 percent.

The Jababeka industrial estate, located in Cikarang, is home to many heavy equipment manufacturers.

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