Gallant Venture

Gallant Venture: 2Q13 net profit turnaround to $8.5m from a loss of $3.5m in the previous year, revenue shot almost ten-fold to $559.2m (+987.8%). This was largely due to the consolidation of PT Indomobil Sukses (IMAS) results. Excluding the $516.8m revenue from IMAS, Gallant's revenue declined 17.5% due to nil recognition of property development sales, lower rental income (-2%), lower utilities revenue (-1.8%) and lower resorts revenue (-15.5%) in Bintan. Group expects continued positive contributions from IMAS with the increasing GDP per capita in Indonesia. In contrast, its industrial park and utilities business remain in a challenging environment as the increasing costs impact its margins.