Daily Brief Indonesia: Lippo Karawaci and more

Lippo Karawaci’s (LPKR) H1/24 results were robust in our view, with growth in all business segments pro forma for the deconsolidation of Siloam International Hospital (SILO). The new strategy and continued sell-down of SILO was a surprise. That said, the sales were carried out as SILO shares hit an all-time high, and at a very high valuation (PE ratio of almost 40x). The resulting cash proceeds and debt reduction are credit positive, and improved LPKR’s credit profile. If investment in listed associates are treated as cash, the company would have a large net cash position.