Solid Quarterly Result in The Last 5 Years
Key Takeaways :
▪️ BSDE IJ recorded a marketing sales growth of 2.9% QoQ or IDR2.1tn in 1Q23, reflecting 24.4% of the management and MNCS FY23E target. This performance was lower than last year (-13.2% YoY) due to seasonality factors and higher take up rate on high side segment (>IDR10bn/unit).
▪️ Residential pre-sales totalled to IDR1.5tn, accounting for 69% of the total achieved; contributed from existing development areas such as: 1) Tanakayu; 2) The Zora, Nava Park; 3) Enchante; 4) Grand Wisata; 5) Kota Wisata, and also new development areas such as Eonna and Hiera.
▪️ BSDE posted a revenue of IDR2.9tn in 1Q23, an increase of 41.9% YoY, reflecting 25.6%/28.1% of consensus/our FY23E target.
▪️ Thus, net profit increased by 154.1% YoY to IDR884.0bn, above consensus/our expectations implying 35.2%/29.5% of FY23 target.
▪️ We recommend BUY for BSDE, with a TP of: IDR1,400 which implies PE/PBV 7.0x/0.6x in FY23E. BSDE’s valuation has become attractive as it is currently traded at a level of 0 STD (average 5-years RNAV) PBV at 81% discount. Risks to our call would include: 1) Low purchasing power; 2) Interest rate hike; 3) USD/IDR rate.
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