Ambitious With a Well-Defined Strategy
Marketing sales FY21 Exceeds Target
BSDE booked IDR7.7tn in FY21 marketing sales, grew by 19% YoY (vs IDR 6.5tn in FY20), or 10% above the company's and our target. This achievement was supported by the growing sales of landed houses by 24% and apartment sales by 38%. BSD City is still the main driver, including Nava Park and Zora, contributing 76% of the total marketing sales in FY21. This achievement was greatly helped by the “Wish for Home” company program and the government’s VAT incentive program, which started on March 21, 2021. Meanwhile, the sales of shop-house fell by 10% YoY due to disturbed business activity caused by Covid-19 Delta variant, causing the customers to withheld purchase during that period.
The New Promotion of “Double Dream” be As Successful As Before?
• This outstanding achievement of “Wish for Home” proved to have a tremendous impact in FY21. BSDE has prepared “Double Dream” promotion which provides a 22%+6% save added with VAT incentive during the Feb June 2022 period.
• BSDE continues to await a significant contribution of BSD City, supported by the development of the 10 km toll road passing through BSD City, which will bring positive performance for BSDE. According to management, the toll road would be built in two stages: 1) 5 km to connect The Green SD to Aeon Mall; 2) 5 km will connect Aeon Mall to Legok.
• BSDE will also seek to develop Grand Wisata Bekasi with the potential of Jakarta satellite area (besides Tangerang) through the Z Living region. Z living was built on 7 ha areas, with the first cluster is Z Sky Garden, consisting of two types of housing: 1) Lifestyle type with land area of 154 sqm or building area of 125 sqm starting at IDR2.6bn ; 2) Modern Type with land and building area of 88 sqm starting at IDR1.4bn.
• Along with the economic recovery, BSDE is confident to launch Latinos Business District in BSD City area. This office will carry the concept of the first boutique small office home office (Boutique SOHO) in BSD City. The first stage of Latinos Business District is marketed in two types, namely T91, which is built in three floors and T62, which is built in two floors with land area of 5x10 sqm for every unit.
• Latinos Business District can be accessed from Jabodetabek through Jakarta-Merak toll (Kebon Jeruk toll) and Jakarta-Serpong toll that is integrated with Kunciran-Serpong toll, JORR 2, Soekarno-Hatta Airport toll and Jagorawi toll.
Marketing Sales of IDR8.55 trillion in FY22E
With various business strategies and promotions planned, we estimate the marketing sales to be IDR8.55 trillion in FY22, supported by the high demand of the domino effect commodity boom, as well as the economic recovery that can help housing demand. Our FY22 marketing sales estimate implies a 22% YoY growth above our FY21F estimation and 11% YoY above BSDE’s marketing sales achievement.
Valuation and Recommendation: BUY at Target Price IDR1,500
We recommend BUY for BSDE, with a TP: of IDR1,500 which implies PE/PBV 17.47x/0.94x in FY22E. BSDE’s valuation has become attractive as it is currently traded at a level of –1 STD (average 3-years PE) PBV at 0.60x. Risks to our call would include: 1) 3rd Wave Covid-19; 2) Low purchasing power; 3) Interest rate.
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