More Focus On Residential and Shop-house
Key Takeaways :
▪️ BSDE recorded revenues of IDR7.3tn in 1H24 or grew by 67.9% YoY (vs IDR5.0tn in 1H23). Sales from residential, land, and commercial sectors, accounted for 88% of the 1H24 revenues. While the remaining 12% came from rental, hotel, estate management, water, recreation, toll road operating services, and construction. Thus, net profit increased by 94.3% YoY to IDR2.3tn, with net profit margin at level 31.8% in 1H24 (vs 24.0% in 1H23).
▪️ In 1H24, marketing sales figures amounted to IDR4.8tn, approximately 51% of the marketing sales target of IDR9.5tn for FY24E, slightly increased by 1.1% compared to the marketing sales performance in 1H23.
▪️ We recommend BUY for BSDE, with a TP of: IDR1,500 which implies PE/PBV 9.7x/0.8x in FY24E. BSDE’s valuation has become attractive as it is currently traded at a level of 0STD (average 5-years PBV) at 0.7x. Risks to our call would include: 1) Low purchasing power; 2) Interest rate; 3) USD/IDR.
MNCS Research
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