Escalating FY23 Marketing Sales Followed with Moderate FY24E
Key Takeaways:
▪️ In FY23, BSDE achieved marketing sales of IDR9.5tn reflecting 108% of the company and MNCS FY23 target.
▪️ BSDE is targeting IDR9.5tn marketing sales in FY24E, a moderate and conservative view for the overall property demand compared to FY23 performance. As a flagship project, sales from properties in BSD City township are aimed to reach a 56% contribution to the overall marketing sales target, or approximately IDR5.3tn.
▪️ Even though BSD City is developing, the company believes that the demands in Grand Wisata and Kota Wisata, the company's township development in the relevant area, are growing primarily because of the industrial advancement east of Jakarta and the growing infrastructure connectivity south of Jakarta.
▪️ We recommend BUY for BSDE, with a TP of: IDR1,400 which implies PE/PBV 10.6x/0.8x in FY24E. BSDE’s valuation has become attractive as it is currently traded at a level of –1 STD (average 5-years PBV) at 0.6x. Risks to our call would include: 1) Low purchasing power; 2) Interest rate; 3) USD/IDR.
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