CTRA - FY23 Earnings in-line with Street’s Forecast

CTRA - FY23 Earnings in-line with Street’s Forecast In 4Q23, CTRA booked strongest quarterly profit of IDR666 bn (+97.2% yoy). This led to a net profit of IDR1.85 tn for FY23 (-0.8% yoy). Lower net profit in 2023 attributed to a high-base effect recognition in 2022, resulting in only a marginal 1.3% growth in the top line. Notably, the revenue from the real estate segment declined by 0.9% yoy in 2023. Meanwhile, the rental revenue (recurring income) experienced robust growth, expanding by 12.5% yoy in 2023. (Source : Company) Comment : The achievement in FY23 is higher than our expectation (107.8% of our estimate) but in-line with the street estimate (102% of the street estimate). In 2024, we expect a stronger performance of CTRA mostly driven by higher real estate segment recognition from the VAT incentives as well as stronger recurring income.