20250528 Genting Plantations

 GENP’s first premium outlet in Indonesia with its 50% JV partner is off to a promising start with its vibrant design and huge market potential. In FY24, GENP’s share of premium outlets profits was MYR51m (Fig.1) or 16% of group core PATMI. We have imputed +MYR10m/+20m/+30m share of profits with this new outlet addition in our FY25E/26E/27E forecasts. With ID’s >281m population size, there is room for more outlets in the future. Maintain BUY & TP of MYR6.99 on 19x FY25 PER (-1SD of 8Y mean). 

We had the opportunity to visit Jakarta Premium Outlets (JKTPO) in April, following its soft opening in March. The design of this outlet appears to be next gen, an upgrade from JPO and GPO. The outlet’s architecture is inspired by ID’s archipelago, incorporating lush greenery, water features, shaded walkways to create comfortable and aesthetically pleasing environment. JKTPO is built on a 1.0m sq ft land, with 0.3m sq ft of NLA [JKTPO’s NLA is broadly similar to JPO, but slightly bigger than GPO]. Shoppers can enjoy discounts of up to 65% off every day.  

JKTPO features over 150 global and local brands. Key premium and luxury brands include: Bally, BOSS, Coach, Furla, Lacoste, Longchamp, Marc Jacobs, Michael Kors, Kate Space, Kenzo, Versace, Swarovski, Tumi and The North Face. It also features the first Adidas outlet store in Indonesia, its largest outlet store in Southeast Asia (S.E.A). In April, although JKTPO is already 100% leased out, only 80% of the tenants commenced operation. Despite that, JKTPO attracted ~50,000 visitors during Lebaran and now attracts ~15,000 visitors on weekdays and ~20,000 visitors on weekends. 

We believe JKTPO will do relatively well as it is strategically located in Alam Sutera Township CBD, about 30-min south of Soekarno-Hatta International Airport (SHIA), and 45-min west of Central Jakarta (Fig.20), making it highly accessible to locals and travellers alike. SHIA is said to handle 55 million passengers annually. Greater Jakarta metropolitan area itself is home to ~33 million population, roughly MY’s population.





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