Analyst Predicts LPKR Sales to Grow Impact of Property Business Increase

Ciptadana Sekuritas analyst Yasmin Soulisa, said that the ability of PT Lippo Karawaci Tbk ( LPKR sales property .

In his research publication, the analyst also said that LPKR is a developer with a strong segment in housing that targets first-time home buyers.


"In 2021, LPKR's landed house sales rose 88.3% YoY (year on year) to Rp3.11 trillion, contributing 62.6% of the total pre-sales. This shows LPKR is able to read current market needs and execute strategies In addition, LPKR posted real estate revenue of Rp4.41 trillion in 2021, up 35.5% YoY in line with the increase in the property business supported by a number of residential projects at Waterfront Estates in Cikarang, Cendana Homes in Lippo Village, and apartment units in Holland Village Jakarta. LPKR also relies on the Embarcadero project in Bintaro, Hillcrest & Fairview in Lippo Village, and Orange County in Cikarang. This has made LPKR's pre-sales soar 86% YoY to Rp4.96 trillion in 2021," he explained, written on Thursday (12/12). /5/2022).

Yasmin predicts LPKR will be able to achieve the pre-sales target of IDR 5.2 trillion in 2022. In terms of revenue, LPKR also has the potential to reach IDR 18.33 trillion in 2022, up 10.8% YoY from IDR 16.53 trillion in 2021. 

"LPKR is also predicted to record an operating profit of IDR 2.32 trillion in 2022, compared to IDR 1.49 trillion in 2021, with a potential net profit of IDR 66 billion in 2022," he explained.

LPKR CEO John Riady targets pre-sales in 2022 to reach Rp5.2 trillion, an increase of 5% from the previous year's realization of Rp4.96 trillion.

LPKR's strategy includes launching a new landed house product cluster that responds to requests from first-time home buyers.

"In addition, to penetrate a wider market in the high-income and mid-rise apartment segments, as well as increase demand for ready-to-live apartment units," he explained.

John added that LPKR saw a great opportunity to expand market penetration by introducing new products at various prices. 

"LKPR started by conducting consumer research to understand the aspirations and motivations of our market segment," said John.

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