Lippo Cikarang, the industrial township developer arm of the Lippo Group, posted an 8 percent growth to its net income in the first nine-months of the year from the same period last year, thanks to steady revenue growth from all of its business segments, the company said in a statement late on Monday.
Jakarta. Lippo Cikarang, the industrial township developer arm of the Lippo Group, posted an 8 percent growth to its net income in the first nine-months of the year from the same period last year, thanks to steady revenue growth from all of its business segments, the company said in a statement late on Monday.
The company’s net income grew to Rp 734.3 billion in the January to September period this year from Rp 680.2 billion ($50 million) in the corresponding period last year, despite the slow economic growth environment and weaker rupiah exchange against the US dollar.
Its revenue grew 11.4 percent to Rp 1.4 trillion.
Lippo Cikarang said the company’s revenue from a residential houses, shophouses and apartment sales division increased by 127 percent to Rp 842.9 billion. This division contributes to 57.3 percent of Lippo Cikarang’s total revenue.
Other healthy revenue growth was posted by its industrial and commercial divisions, as well as town management division.
“The third quarter’s results has performed in line with our expectations in the midst of weakening domestic buying power and tightening mortgage rule. Overall business activities and business profitability remained relatively sound during the third quarter of 2015. With projects such as Orange County, we have sustainable projects for our growth well into the future," Meow Chong Loh, Lippo Cikarang’s President Director said in a statement on Monday.
He added that total marketing sales stood at Rp 2.1 trillion for the January to September period, a growth of 220 percent compared to the same period last year.
“As such we are optimistic that we can achieve our full year 2015 marketing sales target of Rp 2.5 trillion,” Loh said.
Meanwhile, the property company’s recurring income 5.5 percent year-on-year to Rp 140.1 billion and contributed 9.5 percent of its total revenue as of third quarter this year.
Lippo Cikarang, a subsidiary of Indonesia’s biggest property developer by market value Lippo Karawaci, plans to launch Glendale Park apartment towers in its Orange County mixed use development project.
The development of the two apartment towers is expected to cost $100 million, Loh said Oct. 28.
Lippo Cikarang is developing an urban township named after the company’s name that occupies a total area of around 3,000 hectares. Within this township, about 820 manufacturing companies have facilities spread over the designated industrial area.
The Jakarta Globe is affiliated with the Lippo Cikarang through the Lippo Group.