JAKARTA. State-owned real estate company PT PP Properti (Persero) Tbk (PPRO) is focusing on improving its balance sheet in 2020 in accordance with Statement of Financial Accounting Standars (PSAK) 72.
According to Mirae Asset Sekuritas analyst Joshua Michael, PPRO needs several measures to improve its balance sheet. "Including limiting land acquisition, debt restructuring, and accelerating cash inflows," said Mr Michael in his research.
PPRO has prepared four special strategies to adjust to PSAK 72, such as accelerating the marketing of near-complete units and speeding up handover, building sold-out apartment buildings, and developing landed houses for the lower-middle segment.
This year PPRO predicts sales to grow 32.4% year on year (yoy) to Rp 3.2 trillion, driven by growing demand from the lower-middle segment.
However, PPRO's net profit in 2020 is predicted to only reach Rp 346 billion, lower than the company's estimated consolidated profit in 2019. (KR/MS)