Meanwhile, Total Bangun Persada's net profit in 2016 is forecast to grow nearly 50 percent to IDR 243.5 billion (approx. USD $18.3 million) supported by an improving domestic economy and the inflow of fresh funds into Indonesia due to the tax amnesty program. It is expected that part of Indonesia's tax dodgers will repatriate their offshore assets into the country and part of these inflows will find their way into property development and property demand. CIMB Securities claims that several of Indonesia's property developers have already started to prepare projects in anticipation of an inflow of funds.

This year the corporate earnings of Total Bangun Persada have already shown a recovery. Up to April 2016, the company won IDR 600 billion (approx. USD $45.1 million) worth of contracts, or 20 percent of its full-year target, in line with CIMB Securities' estimates. Currently, the construction company is participating in tenders worth up to IDR 4.9 trillion. It is estimated that Total Bangun Persada will win about 70-80 percent of these tenders. As such, the company is forecast to collect revenue up to IDR 2.5 trillion in 2016. The company also formed four joint operations that are expected to bring in an additional IDR 69 billion worth of revenue this year.

CIMB Securities set the target price of Total Bangun Persada's shares at IDR 1,080 a piece, reflecting a price-to-earnings (P/E) ratio of 12.4 times. On Tuesday's trading day (28/06), shares of Total Bangun Persada fell 1.92 percent to IDR 765 per share. However, so far this year its shares have climbed 24.39 percent.

Stock Quote Total Bangun Persada - TOTL:

Earlier, Total Bangun Persada won tenders involving the construction of the Hillcrest House and Fairview House towers (a project developed by Lippo Karawaci). Construction started in early May 2016 and is scheduled to be completed in about 1.5 years.

Future Projection Total Bangun Persada's Financial Highlights:

     2014   2015   2016F   2017F   2018F
Net Sales   2,106   2,266   2,520   2,887   3,591
   184    229    305    389    498
Net Income
   161    163    244    296    373
P/E Ratio (x)    13.8    13.6     9.1     7.5     6.0
P/BV (x)     2.8     2.6     2.3     2.0     1.7

in billion IDR rupiah unless otherwise stated
Source: CIMB Securities (28/06/2016)