Lippo Cikarang Boasts Double-Digit Growth in Profit
Jakarta. Property developer Lippo Cikarang, a subsidiary of publicly listed Lippo Karawaci, is reporting double-digit growth on its profit for the first six months of 2015, backed by high demand in residential estates.
The company booked around Rp 478 billion ($35.3 million) in net profit from January to June, up 18 percent compared to Rp 403 billion in the same period last year. Sales, meanwhile, grew by 12 percent to approximately Rp 955 billion.
Revenues from landed houses, house offices and apartments doubled year-on-year to Rp 477 billion in the six-month period from Rp 222 billion, making up half of the company’s total revenue.
Industrial and commercial businesses contributed Rp 373.3 billion, or 39 percent of Lippo Cikarang’s total revenue.
“When faced with challenges that come with the country’s economic slowdown, which has caused weaker purchasing power and greater competition in the property market, especially skyscrapers, we’re still working hard for the Orange County project,” Lippo Cikarang president director Meow Chong Loh said in a statement released on Thursday.
Lippo Karawaci, whose shares are listed on the local stock exchange under LPCK, is the developer of a 3,000-hectare industrial estate under the same name.
Its ongoing projects include Orange County, a 322-hectare, mixed-use project located on the eastern outskirts of Jakarta. The project is estimated to worth Rp 250 trillion in total investment.
The developer’s total marketing sales in the first six months of 2015 reached Rp 1.5 trillion, roughly 60 percent of its 2015 target of Rp 2.5 trillion, while recurring income reached Rp 88 billion.
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