Lippo Karawaci Swings to Profit in 2023 After Heavy Losses

STOCK RECOMMENDATION - JAKARTA. PT Lippo Karawaci Tbk (LPKR), a diversified Indonesian conglomerate, reported a net profit of 50.14 billion rupiah (US$3.5 million) in 2023, marking a significant turnaround from a loss of 2.69 trillion rupiah (US$188.6 million) in 2022.

The company's financial performance improved across several key metrics. Revenue grew by 14.1% to 16.99 trillion rupiah (US$1.19 billion) in 2023, compared to 14.80 trillion rupiah (US$1.04 billion) in the previous year.

The healthcare segment emerged as the largest contributor to revenue, generating 11.19 trillion rupiah (US$78.5 million) last year.

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Real estate development and lifestyle businesses followed with contributions of 4.54 trillion rupiah (US$31.8 million) and 1.25 trillion rupiah (US$8.7 million), respectively.

Analysts attributed the turnaround to a decline in other expenses, which dropped from 1.86 trillion rupiah (US$130.2 million) in 2022 to 374.59 billion rupiah (US$26.2 million) in 2023. The 2022 figure was heavily impacted by a foreign exchange loss of 1.29 trillion rupiah (US$90.7 million).

 

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MNC Securities analyst Herditya Wicaksana expressed a bullish outlook on LPKR's stock, recommending a "trading buy" with a target price range of 78 rupiah to 82 rupiah per share.

He noted that the stock is currently trading near its support level of 69 rupiah to 74 rupiah per share.

However, Kanaka Hita Solvera William Wibowo, an equity analyst, adopted a more cautious approach.

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He observed that LPKR's stock remains in a downtrend, with a support level of 67 rupiah and a resistance level of 79 rupiah per share. Given this trend, Wibowo recommended a "wait and see" strategy for investors.