Lippo Cikarang

Stock Quote Lippo Cikarang - LPCK:

Business Summary

The company’s core business involves urban development, which includes the development of real estate and industrial estate, development of both infrastructure and public facilities, provision of supporting services, and investing, either directly or indirectly through subsidiaries or joint ventures with other parties.

Starting in the early 1990s, Lippo Cikarang converted a sleeping landbank in Cikarang at the east of Jakarta (Bekasi) into a comprehensive township, complete with industrial and residential areas as well as supporting infrastructure and services. This area, where the company owns 3,000 hectares of land, became known as Lippo Cikarang. At end 2012, 2,700 hectares have been developed; about 1,000 hectares were converted into residential zones and another 1,000 hectares into industrial zones. The residential zones, having about 40,000 inhabitants, include 12,000 houses, two apartment towers, and 800 shophouses (ruko). The industrial zones include 700 light industrial companies that comply with pollution free policies.

Industrial Division

Lippo Cikarang's industrial division remains the largest contributor to the company's growth. Due to growing foreign interest in Indonesia's industrial sector as well as a rapidly growing middle class segment and general robust macroeconomic growth of the country, land prices in Cikarang have risen considerably, which increases the company's profitability. According to the company, Lippo Cikarang has a competitive advantage over competitors, because it provides large ready-for-building estates, supported by residential and commercial conveniences.

Commercial Division

The Lippo Cikarang area has seen a growing influx of retailers, attracted by the potential consumer boost within its township due to the growing population that is lured by employment opportunities within industrial zones and residential estates.

Residential Division

In line with the continued inflow of foreign companies and Indonesia's expanding middle class, demand for Lippo Cikarang's residential division has grown too. The company offers various residential lines (apartments/ condominiums, houses, and shophouses) for the elite, middle class as well as lower middle income markets of Indonesia's society.

Financial Highlights Lippo Cikarang:

	2014	2015	2016	2017
Revenues	1,803.0	2,120.6	1,544.9
Gross Profit	1,060.0	1,112.4	711.3
Net Income	846.0	915.0	539.8
Operating Income	927.1	914.6	529.7
Income before Tax	944.1	930.5	549.9
Total Assets	4,390.5	5,476.8	5,653.2
Total Liabilities	1,712.4	1,843.5	1,410.5
Profit per Share¹	1,215	1,308	776

 

	2009	2010	2011	2012	2013
Revenues	323.2	404.7	902.5	1,013.1	1,327.9
Gross Profit	148.2	179.0	388.1	520.3	742.7
Net Income	25.7	65.3	257.7	407.0	590.6
Operating Income	96.2	113.5	312.5	447.1	638.3
Income before Tax	41.2	85.3	301.6	457.6	665.7
Total Assets	1,551.0	1,670.0	2,042.0	2,832.0	3,854.2
Total Liabilities	1,052.6	1,106.2	1,220.5	1,603.5	2,030.7
Profit per Share¹	37	94	370	585	849

^{in billion IDR Rupiah, unless otherwise stated
¹ in IDR Rupiah
Source: Lippo Cikarang, Annual Report 2016}