Gallant Venture

Gallant Venture: Included PT Indomobil Sukses Internasional's (IMAS) financials after increasing its stake from an associate to subsidiary, Gallant reported a 3Q13 net profit turnaround to $1.8m from a loss of $0.7m in 3Q12, while revenue shot up 1427% y/y to 677.3m, of which the bulk was contributed by IMAS ($633.9m). Gallant's utilities revenue of $27.3m dropped 5% due to lower power consumptions at the industrial parks, while rental revenue at its industrial parks in Batam and Bintan slowed 3% to $9.5m on the back of lower rental rates and drop in occupancy. Resorts revenue also deflated 12% to $5.2m on lower tourist arrivals into Bintan and increased competition. Meanwhile, group's property development contributed revenue of $1.3m, compared to no contribution in the previous period. Group provided that the industrial park and utilities business remain challenging and electricity consumption remains depressed. Margins will be impacted by cost inflation, which includes labour, fuel and potential surcharge on gas purchases.