Lippo Karawaci Tbk
EARNINGS: Lippo Karawaci Q4’23 Revenue IDR 4.5T, Up 7% YoY, EBITDA IDR 1.1T, Down 14% YoY as Healthcare OpEx Higher, OCF IDR 1.4T, FCF IDR 963B; LPKR Cash Excluding LPCK, SILO at IDR 1.25T
Mon 03/25/2024 22:53 PM
Relevant Documents:
FY23 Results
FY23 Results Press Release
Indonesian property and healthcare conglomerate PT Lippo Karawaci Tbk, or LPKR, announced its audited financial results for 2023 to the Indonesia Stock Exchange today, March 26, reporting net revenues of 16.8 trillion Indonesian rupiahs ($1.063 billion), up 14.7% year over year from IDR 14.8 trillion. The company’s main business segments - real estate and healthcare - accounted for most of the growth.
The following is a snapshot of LPKR’s quarterly financial performance:
Source: Company disclosures, Reorg estimates
LPKR reported EBITDA of IDR 4.2 trillion in 2023, up 28% year over year from IDR 3.3 trillion. The healthcare segment contributed IDR 3 trillion of EBITDA, with the bulk of the remainder coming from the real estate segment. The company reported IDR 50 billion of net profit in 2023 after including IDR 745 billion of Lippo Mall’s Indonesia Retail Trust’s negative fair value adjustment in the fourth quarter of 2023.
LPKR reported IDR 2.6 billion of consolidated cash and equivalents. At the end of 2023, LPKR’s key subsidiaries, PT Lippo Cikarang Tbk (LPCK) and PT Siloam International Hospitals Tbk (SILO), reported cash and equivalents of IDR 206.1 billion and IDR 1.2 trillion, respectively. This implies that cash and equivalents at LPKR - excluding LPCK and SILO - stood at around IDR 1.25 trillion, based on Reorg’s estimates.
Highlights of LPKR’s key business segments based on the investors’ press release are as follow:
LPKR’s stake in SILO remains at 58.07% as of Dec. 31, 2023, the same as the previous reporting period.
Looking ahead, the company has set a marketing sales target of IDR 5.375 trillion for 2024, representing a 10% increase from the fiscal 2023 target.
LPKR’s capital structure is below:
FY23 Results
FY23 Results Press Release
Indonesian property and healthcare conglomerate PT Lippo Karawaci Tbk, or LPKR, announced its audited financial results for 2023 to the Indonesia Stock Exchange today, March 26, reporting net revenues of 16.8 trillion Indonesian rupiahs ($1.063 billion), up 14.7% year over year from IDR 14.8 trillion. The company’s main business segments - real estate and healthcare - accounted for most of the growth.
The following is a snapshot of LPKR’s quarterly financial performance:
Source: Company disclosures, Reorg estimates
LPKR reported EBITDA of IDR 4.2 trillion in 2023, up 28% year over year from IDR 3.3 trillion. The healthcare segment contributed IDR 3 trillion of EBITDA, with the bulk of the remainder coming from the real estate segment. The company reported IDR 50 billion of net profit in 2023 after including IDR 745 billion of Lippo Mall’s Indonesia Retail Trust’s negative fair value adjustment in the fourth quarter of 2023.
LPKR reported IDR 2.6 billion of consolidated cash and equivalents. At the end of 2023, LPKR’s key subsidiaries, PT Lippo Cikarang Tbk (LPCK) and PT Siloam International Hospitals Tbk (SILO), reported cash and equivalents of IDR 206.1 billion and IDR 1.2 trillion, respectively. This implies that cash and equivalents at LPKR - excluding LPCK and SILO - stood at around IDR 1.25 trillion, based on Reorg’s estimates.
Highlights of LPKR’s key business segments based on the investors’ press release are as follow:
- Real Estate: The segment reported 2023 marketing sales of IDR 5.12 trillion, 5% above its stated 2023 target. The division reported revenue of IDR 4.5 trillion for 2023, a 10% increase year over year. The company highlighted the that all units of the Park Serpong project were completely sold and it also launched a shophouse product named “The Hive Park Avenue”;
- Healthcare: Driven by SILO, this segment booked IDR 11.2 trillion in revenue in 2023 as in-patient days increased 26% year over year to reach 939,877 while outpatient visits increased 23% year over year to reach 3,949,341; and
- Lifestyle: This primarily includes the company's mall and hotel businesses, which reported an 11% year-over-year increase in revenue to IDR 1.3 trillion.
LPKR’s stake in SILO remains at 58.07% as of Dec. 31, 2023, the same as the previous reporting period.
Looking ahead, the company has set a marketing sales target of IDR 5.375 trillion for 2024, representing a 10% increase from the fiscal 2023 target.
LPKR’s capital structure is below:
|
09/30/2023 |
EBITDA Multiple |
|||||||
|---|---|---|---|---|---|---|---|---|
|
(IDR in Billions) |
Amount |
Price |
Mkt. Val. |
Maturity |
Rate |
Yield |
Book |
Market |
|
|
||||||||
|
Bank Negara Indonesia 1 |
770.0 |
|
770.0 |
Jun-12-2024 |
7.500% |
|
||
|
Bank Mandiri 2 |
551.3 |
|
551.3 |
Mar-2024 |
7.750% |
|
||
|
Bank CIMB Niaga 3 |
450.0 |
|
450.0 |
Jun-30-2024 |
9.000% |
|
||
|
Bank Permata 4 |
500.0 |
|
500.0 |
May-27-2024 |
Reference Rate + 1.000% |
|
||
|
Bank Sahabat Sampoerna 5 |
- |
|
- |
Jun-15-2024 |
Reference Rate + 13.000% |
|
||
|
Total Bank Loans (Short-term) |
2,271.3 |
2,271.3 |
0.5x |
0.5x |
||||
|
Bank J Trust Indonesia 6 |
- |
|
- |
Apr-18-2023 |
12.750% |
|
||
|
Bank Ganesha 7 |
- |
|
- |
Jan-30-2023 |
10.500% |
|
||
|
Bank KEB Hana Indonesia 8 |
- |
|
- |
Oct-2023 |
10.500% |
|
||
|
Bank Mandiri 9 |
150.0 |
|
150.0 |
Jun-13-2026 |
8.000% |
|
||
|
Bank Tabungan Negara (Persero) 10 |
380.0 |
|
380.0 |
Apr-08-2026 |
7.000% |
|
||
|
Syndicated Loan - BNI/ CIMB Niaga 11 |
5,145.0 |
|
5,145.0 |
Feb-06-2030 |
Reference Rate + 2.250% |
|
||
|
Total Bank Loans (Long-term) |
5,675.0 |
5,675.0 |
1.9x |
1.9x |
||||
|
Finance lease - PT Century Tokyo Leasing 12 |
- |
|
- |
|
|
|
||
|
Finance lease - PT Mitsubishi UFJ & Leasing 12 |
8.6 |
|
8.6 |
|
|
|
||
|
PT Bumiputera - BOT Finance |
41.9 |
|
41.9 |
|
|
|
||
|
Operating leases capitalised (PSAK 73) 13 |
5,937.4 |
|
5,937.4 |
|
|
|
||
|
Total Leases |
5,987.9 |
5,987.9 |
3.3x |
3.3x |
||||
|
LPKR $425mil 6.75% Oct'26 senior notes 14 |
3,022.3 |
|
3,022.3 |
Oct-31-2026 |
6.750% |
|
||
|
LPKR $420mil 8.125% Jan'25 senior notes 15 |
3,681.9 |
|
3,681.9 |
Jan-22-2025 |
8.125% |
|
||
|
Total Senior Notes |
6,704.2 |
6,704.2 |
4.9x |
4.9x |
||||
|
Total Debt |
20,638.4 |
20,638.4 |
4.9x |
4.9x |
||||
|
Less: Cash and Equivalents |
(2,309.0) |
(2,309.0) |
||||||
|
Net Debt |
18,329.4 |
18,329.4 |
4.4x |
4.4x |
||||
|
Plus: Market Capitalization |
6,240.0 |
6,240.0 |
||||||
|
Enterprise Value |
24,569.4 |
24,569.4 |
5.9x |
5.9x |
||||
|
Operating Metrics |
||||||||
|
LTM Reported EBITDA |
4,175.0 |
|||||||
|
|
||||||||
|
Liquidity |
||||||||
|
Plus: Cash and Equivalents |
2,309.0 |
|||||||
|
Total Liquidity |
2,309.0 |
|||||||
|
Credit Metrics |
||||||||
|
Gross Leverage |
4.9x |
|||||||
|
Net Leverage |
4.4x |
|||||||
|
Notes: LPKR adopted PSAK 73 in 2020; NCI of IDR 4.2T; LMIRT deconsolidated in Q4'21; Deconsolidated cash excl LPCK, SILO ~IDR 1.1T 1. This loan is secured by land plots on the LPKR level 2. Mostly at LPKR level secured by 15 lots of land, 20.4ha, remainder at GMTD level secured by land for development in Barombong Village, District Tamalate, Makassar City 3. LPCK, SILO level; secured by land 4. LPKR level, secured by "Pawn Deposit" 5. - GMTD level 6. ASF level, secured by receivables; gearing ratio < 9x 7. ASF level, secured by receivables 8. Rate: 10.5% - 11%, maturity: Dec'22 - Oct'23, SILO and ASF levels, mostly latter 9. LPKR level, DSCR> 1.2x 10. LPCK level, secured by land, HGB, current ratio >1x, D/E<2.7x, DSCR>100%, IDR500B facility size 11. IDR 6T facility, LPKR level; BNI: IDR 2.94T, CIMB: IDR 2.205T 12. SILO Level, rate and maturity not available 13. Adoption of PSAK 73, rate and maturity not available 14. See Reorg cov brief; $194.7mil outstanding as of Sep'23 15. $237.1mil outstanding as of Sep'23 |
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