Bakrieland, Excess Baggage, CLSA

ELTY posted net loss of Rp19bn (US$2m) in FY11, mainly due to high
operational expenses and interest expenses relating to its toll road
business under its subsidiary, Bakrie Toll Road (BTR). ELTY targets lower
marketing sales this year with launches from its residential and
commercial projects. ELTY has planned to spin-off BTR since last year, but
it hasn’t able to pull it off. Only 1 out of 4 toll road projects under BTR is
operational, and the average daily traffic of 11k vehicle is still way below
management expectation due. We downgrade ELTY to U-PF with TP:
Rp85/share.