Indonesia Initiating Coverage 14 March 2012 BUY Lippo Karawaci Building the healthcare kingdom Share price: Rp690 Target price: Rp900 Focuses on growing healthcare business. Lippo Karawaci (LPKR) is set to emerge as the largest private sector provider of medical services in Indonesia. It is the largest beneficiary of the growing healthcare industry Anthony Yunus which still in its infancy. Industry prospects are very bright, given a rising
[email protected] middle class, lack of competition and high barriers to entry. Further, the (021) 2557 1139 company plans to commence development of seven new hospitals across the country: three in Java, two in Sumatera and two in eastern Indonesia. As such, by the end of 2013, LPKR plans to have 20 hospitals in operation. Boosting residential and urban development. LPKR has around 1,500ha land for township projects in Greater Jakarta, which can last for the next 20 years. It is also one of the largest super block developers, with two big projects of 26ha each in Jakarta. Currently, 49% of its revenue comes Stock Information from residential and urban development. The company expects residential Description: estate development to account for a greater part of its overall sales mix in Ticker: LPKR.IJ 2012. Shares Issued (m): 23,078 Market Cap (US$ m): 1,735 Aggressively expanding retail business. LPKR currently manages 25 3-mth Avg Daily Turnover(US$ m): 2.9 malls, and plans to grow its leased-mall assets by an additional 15 malls, JCI Index: 4009 Free float (%): 82.1 construction of which are in the pipeline.