Welcome Guest   |  Login   |   Signup
JG Logo
Thu, May 24, 2012
Archive Search

With Investors Bullish About Growth Prospects, Garuda Gains 13 Percent
Francezka Nangoy | December 20, 2011

Share This Page
2
5
0
0
Share with google+ :


Post a comment
Please login to post comment

Comments

Be the first to write your opinion!

Shares of Garuda Indonesia, the national flag carrier, rose the most since they first traded in Jakarta 10 months ago after reporting 11-month profit that exceeded analysts’ expectations and forecasting net income that may be almost double from last year.

Garuda surged 13 percent to Rp 480 on the Indonesia Stock Exchange on Tuesday. That was the biggest advance since the state-owned company made its debut on Feb. 10.

Even with the gain, shares of the company have fallen 36 percent since the launch.

Maxi Liesyaputra, an analyst at BNI Sekuritas, a unit of Bank Negara Indonesia, said that news of the company’s revenue and profit forecast had lifted investor sentiment.

Emirsyah Satar, president director of Garuda, said after the market closed on Monday that the company’s revenue had risen 42 percent to Rp 22.97 trillion ($2.5 billion) in the January-November period from a year earlier. Net income jumped 124 percent to Rp 725 billion.

“The announcement of the financial performance up to November was beyond expectations, and that lifted market sentiment,” Maxi said.

He said he had forecast Garuda to post net income of Rp 627 billion for the entire year and “the company had beaten the forecast even before the year ended.”

Harry Su, head of research at Bahana Securities in Jakarta, also attributed the sharp increase in Garuda’s shares to the company’s profit exceeding analysts’ estimates, including his.

“I think most of the good news has stemmed from Garuda’s solid 11-month performance with net income at Rp 725 billion, exceeding our full-year 2011 estimate of Rp 702 billion,’’ Harry said in an e-mail on Tuesday.

Emirsyah also said on Monday that net income could increase to Rp 1 trillion this year from Rp 515.5 billion in 2010. Revenue will probably rise to Rp 26 trillion this year from Rp 19.5 trillion recorded in 2010, he said.

The company expects its number of passengers to increase by 20 percent in 2012, aided by additional aircraft and new domestic and international routes, Emirsyah said on Monday.

The airline carried 15.45 million passengers in the 11 months through November, up 36 percent from the same period in 2010, and it expects to fly a total of 17 million this year.

Maxi said Indonesian demand for travel was increasing along with purchasing power.