TIDMJDS TIDMJAR
RNS Number : 9575U
Jardine Strategic Hldgs Ltd
31 October 2017
To: Business Editor 31st October 2017
For immediate release
PT Astra International Tbk
2017 Third Quarter 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
31st October 2017
PT ASTRA INTERNATIONAL TBK
2017 THIRD QUARTER FINANCIAL STATEMENTS
Highlights
-- Net earnings per share up 26% at Rp350
-- Increased market share for both cars and motorcycles
-- Positive contribution from Permata Bank
-- Heavy equipment and mining contracting volumes benefit from strong coal prices
-- Agribusiness improved with higher crude palm oil prices and sales volume
"The outlook for the rest of the year is expected to remain
positive as the results will continue to benefit from the increased
commodity prices, although there are concerns over greater
competition in the car market as well as increased provisioning in
certain of the Group's financing activities."
Prijono Sugiarto
President Director
Group Results
9 months ended 30th September
----------------------------- ------------------------------------------
2017 2016 Change
Rp bn Rp bn %
----------------------------- ---------------- --------------- -------
Net revenue 150,225 132,294 14
----------------------------- ---------------- --------------- -------
Net income* 14,184 11,277 26
----------------------------- ---------------- --------------- -------
Rp Rp
----------------------------- ---------------- --------------- -------
Net earnings per share 350 279 26
----------------------------- ---------------- --------------- -------
As at 30th As at 31st Change
September 2017 December 2016 %
Rp bn Rp bn
----------------------------- ---------------- --------------- -------
Shareholders' funds** 119,265 111,951 7
----------------------------- ---------------- --------------- -------
Rp Rp
----------------------------- ---------------- --------------- -------
Net asset value per share** 2,946 2,765 7
----------------------------- ---------------- --------------- -------
* 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 nine months ended 30th September
2017 and 2016 as well as the financial position as at 30th
September 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
The Group's automotive businesses achieved improved market
shares for both cars and motorcycles during the period under
review, but experienced discounting pressure in an increasingly
competitive car market. The results from the Group's financial
services businesses improved with a return to profit by Permata
Bank, while increased commodity prices led to strong performances
from heavy equipment and mining, as well as its agribusiness
activities.
Performance
The Group's consolidated net revenue for the period increased by
14% to Rp150.2 trillion, with higher revenues achieved in most of
its business segments.
The Group's net income was higher at Rp14.2 trillion, an
increase of 26% over the comparable period last year.
The net asset value per share was Rp2,946 at 30th September
2017, 7% higher than at the end of 2016.
Net cash, excluding the Group's financial services subsidiaries,
was Rp1.2 trillion at the end of September 2017. This was
significantly lower compared with net cash of Rp6.2 trillion at the
end of 2016 mainly due to investments in toll roads, power plants
and property during the period. The Group's financial services
subsidiaries had net debt of Rp46.9 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
------------------------------ -------------------------------------
9 months ended 30th September
------------------------------ -------------------------------------
2017 2016 Change
Rp bn Rp bn %
------------------------------ ----------- ----------- -----------
Automotive 6,579 5,995 10
------------------------------ ----------- ----------- -----------
Financial Services 2,948 2,074 42
------------------------------ ----------- ----------- -----------
Heavy Equipment and Mining 3,400 1,893 80
------------------------------ ----------- ----------- -----------
Agribusiness 1,121 913 23
------------------------------ ----------- ----------- -----------
Infrastructure and Logistics (66) 213 (131)
------------------------------ ----------- ----------- -----------
Information Technology 105 105 0
------------------------------ ----------- ----------- -----------
Property 97 84 15
------------------------------ ----------- ----------- -----------
Attributable Net Income 14,184 11,277 26
------------------------------ ----------- ----------- -----------
Automotive
Net income from the Group's automotive division increased by 10%
to Rp6.6 trillion, primarily due to higher car and motorcycle
sales, although there was increasing discounting pressure in the
car market.
The wholesale market for cars rose by 3% to 804,000 units.
Astra's car sales were 5% higher at 444,000 units, resulting in its
market share improving from 54% to 55%. The Group launched nine new
models and ten revamped models during the period.
The wholesale market for motorcycles was flat at 4.3 million
units. Astra Honda Motor's domestic sales were, however, 2% higher
at 3.2 million units, resulting in its market share improving from
73% to 75%. The Group launched seven new models and fourteen
revamped models during the period.
Net income of Astra Otoparts, the Group's component business,
increased 30% to Rp370 billion, reflecting higher earnings
contributions from its joint venture and associate companies driven
by increased sales volumes.
Financial Services
Net income from the Group's financial services division
increased 42% to Rp2.9 trillion, largely due to a return to profit
at Permata Bank.
The Group's consumer finance businesses saw a 6% increase in the
aggregate amount financed, including amounts financed through joint
bank financing without recourse, to Rp56.7 trillion. Car-focused
Astra Sedaya Finance reported a 9% increase in net income at Rp711
billion. Toyota Astra Financial Services recorded a 33% decrease in
net income to Rp169 billion following increased loan loss
provisions. Motorcycle-focused Federal International Finance's net
income was 14% higher at Rp1.5 trillion, as it benefited from
Honda's improved market share as well as loan product
diversification.
The aggregate amount financed through the Group's heavy
equipment-focused finance operations increased by 56% to Rp5.2
trillion. Net income at Surya Artha Nusantara Finance, which
specialises in small and medium size heavy equipment financing, was
40% lower at Rp36 billion, mainly due to larger loan loss
provisions.
Permata Bank, in which Astra's holds a 44.6% interest, reported
a net income of Rp708 billion for the period, compared with a net
loss of Rp1.2 trillion in 2016. The Bank's gross non-performing
loan ratio improved from 8.8% at the end of 2016 to 4.7% at 30th
September 2017, while its net non-performing loan ratio improved
from 2.2% to 1.8%. Permata Bank's return to profitability was
mainly driven by an improvement in asset quality and the previously
announced sale of a portfolio of its non-performing loans.
Asuransi Astra Buana, the Group's general insurance company
achieved higher investment income and reported net income up 7% at
Rp749 billion.
During the period, the Group's life insurance joint venture,
Astra Aviva Life, acquired more than 185,000 new individual life
customers and 290,000 new participants for its corporate employee
benefits programmes, bringing the respective totals to 341,000 and
657,000 people being insured at the end of September 2017.
Heavy Equipment and Mining
The net income contribution from the Group's heavy equipment and
mining division increased by 80% to Rp3.4 trillion.
United Tractors, which is 59.5%-owned, reported net income 80%
higher at Rp5.6 trillion. The increase was due to improved
performances in its construction machinery, mining contracting and
mining operations, all of which benefited from strong coal
prices.
In its construction machinery business, Komatsu heavy equipment
sales were up 73% at 2,744 units, while parts and service revenues
were also higher. The mining contracting operations of Pamapersada
Nusantara recorded a 5% increase in coal production at 82 million
tonnes, while overburden removal was up 12% at 585 million bank
cubic metres. United Tractors' mining subsidiaries reported coal
sales down 12% at 5 million tonnes, due to lower volumes in its
coal trading business.
General contractor Acset Indonusa, a 50.1% subsidiary of United
Tractors, reported net income up 178% at Rp111 billion, with Rp7.2
trillion in new contracts secured, compared with Rp2.5 trillion
secured in the same period last year.
Agribusiness
Net income from the Group's agribusiness division increased by
23% to Rp1.1 trillion.
Astra Agro Lestari, which is 79.7%-owned, reported net income of
Rp1.4 trillion, up from Rp1.1 trillion in 2016, benefiting from
higher crude palm oil prices and sales volumes. Average crude palm
oil prices achieved were 10% higher at Rp 8,309/kg, while sales of
crude palm oil and its derivatives were 15% higher at 1.26 million
tonnes compared with the same period last year.
Infrastructure and Logistics
The Group's infrastructure and logistics division reported a net
loss of Rp66 billion, compared with a net profit Rp213 billion in
the same period in the prior year. This was mainly due to initial
losses on the newly opened Cikopo-Palimanan toll road, in which the
Group acquired a 45% interest earlier in the year, and a loss on
the disposal of the Group's 49% interest in PAM Lyonnaise Jaya, a
water concession with five years left to run. The 72.5km
Tangerang-Merak toll road, operated by 79.3%-owned Marga
Mandalasakti, saw traffic volumes increase by 6% to 37 million
vehicles.
Serasi Autoraya's net income increased by 99% to Rp135 billion,
due to higher net margins in its car leasing and rental, as well as
logistics businesses, despite a 6% decline in vehicles under
contract.
Information Technology
Net income from the Group's information technology division was
flat at Rp105 billion.
Astra Graphia, which is 76.9%-owned, reported net income of
Rp136 billion, mainly coming from increased revenue from its
document solutions and office service businesses, partly offset by
lower revenue from InformationTechnology Solutions.
Property
Net income from the Group's property division was 15% higher at
Rp97 billion, mainly due to higher recognised development earnings
on its Anandamaya Residences project which is scheduled for
completion in 2018.
In September 2017, 50%-owned Astra Land Indonesia entered into
an agreement to increase its shareholding in Astra Modern Land,
which is developing a 67-hectare site in East Jakarta, from 50% to
67%.
Prospects
The outlook for the rest of the year is expected to remain
positive as the results will continue to benefit from the increased
commodity prices, although there are concerns over greater
competition in the car market as well as increased provisioning in
certain of the Group's financing activities.
Prijono Sugiarto
President Director
31st October 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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