ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

Lippo Karawaci (LPKR IJ) - An Audience with the Future

FIRST REIT Rights Right FIRST REIT. Right On.

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" data-smartkarma-citation="entities:3121:1" rel="noopener">Lippo Karawaci (LPKR IJ)</a> has not had an easy time of it over the past two years, with a complicated financial restructuring and rights issue but that is now behind the company, with a new high caliber management team driving its core property, and other businesses forward. 
The company is now focused on three core pillars, which include its property development, investment property and hospitals business under <a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ),</a> and its fund management business, which covers its Singapore listed REITS in including <a href="https://www.smartkarma.com/entities/first-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:15848:1" rel="noopener">First REIT (FIRT SP)</a> and <a href="https://www.smartkarma.com/entities/lippo-malls-indonesia-retail-trust" target="_blank" data-smartkarma-citation="entities:10946:1" rel="noopener">Lippo Malls Indonesia Retail Trust (LMRT SP).</a>
The core property business is back in business, with the company already surpassing its FY20E marketing sales target of IDR2.5tn by October versus IDR1.9bn last year, and with a more aggressive target of IDR3.5tn for FY2021E, with quality of the earnings improving, with less raw land sales. 
<a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" data-smartkarma-citation="entities:3121:1" rel="noopener">Lippo Karawaci (LPKR IJ)</a> is also working on developing and selling its legacy high rise project. These have experienced some COVID-19 related delays but will start in 2021, with a finite cost to complete those projects.
The company's real estate management and hospital business has seen more COVID-19 impact with obvious pressure on rentals and revenues at <a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ)</a> down by -4%, only supported by increased exposure to COVID-19 testing, with patient volumes down -25%. for 9M2020.
The sale of the Puri Mall to <a href="https://www.smartkarma.com/entities/lippo-malls-indonesia-retail-trust" target="_blank" data-smartkarma-citation="entities:10946:1" rel="noopener">Lippo Malls Indonesia Retail Trust (LMRT SP)</a> will likely complete in January/February 2021 but activity with its REITs is likely to be limited, especially with <a href="https://www.smartkarma.com/entities/first-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:15848:1" rel="noopener">First REIT (FIRT SP)</a> as <a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ)</a> has slowed expansion and is focused on sweating its assets and bringing them to maturity. 
<a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" data-smartkarma-citation="entities:3121:1" rel="noopener">Lippo Karawaci (LPKR IJ)</a> will likely book a loss in 2020 but should turn a profit in 2021. It is currently trading on 0.6x FY2020PBV and at an 83% discount to the company's NAV.  This is by no means challenging for a company going through a meaningful turnaround, with an improving and more visible earnings outlook, as well as a relatively healthy balance sheet.

Lippo Karawaci (LPKR IJ) has not had an easy time of it over the past two years, with a complicated financial restructuring and rights issue but that is now behind the company, with a new high caliber management team driving its core property, and other businesses forward. 
The company is now focused on three core pillars, which include its property development, investment property and hospitals business under Siloam International Hospital (SILO IJ), and its fund management business, which covers its Singapore listed REITS in including First REIT (FIRT SP) and Lippo Malls Indonesia Retail Trust (LMRT SP).
The core property business is back in business, with the company already surpassing its FY20E marketing sales target of IDR2.5tn by October versus IDR1.9bn last year, and with a more aggressive target of IDR3.5tn for FY2021E, with quality of the earnings improving, with less raw land sales. 
Lippo Karawaci (LPKR IJ) is also working on developing and selling its legacy high rise project. These have experienced some COVID-19 related delays but will start in 2021, with a finite cost to complete those projects.
The company's real estate management and hospital business has seen more COVID-19 impact with obvious pressure on rentals and revenues at Siloam International Hospital (SILO IJ) down by -4%, only supported by increased exposure to COVID-19 testing, with patient volumes down -25%. for 9M2020.
The sale of the Puri Mall to Lippo Malls Indonesia Retail Trust (LMRT SP) will likely complete in January/February 2021 but activity with its REITs is likely to be limited, especially with First REIT (FIRT SP) as Siloam International Hospital (SILO IJ) has slowed expansion and is focused on sweating its assets and bringing them to maturity. 
Lippo Karawaci (LPKR IJ) will likely book a loss in 2020 but should turn a profit in 2021. It is currently trading on 0.6x FY2020PBV and at an 83% discount to the company's NAV.  This is by no means challenging for a company going through a meaningful turnaround, with an improving and more visible earnings outlook, as well as a relatively healthy balance sheet.

Lippo Malls Indonesia Retail Trust (LMRT SP)

Lippo Karawaci (LPKR IJ) - Reasons to Be Cheerful