Live Chat Software
Berita Dan Riset Terbaru
Company Research
Danareksa Equity Snapshot - BSDE 13 Februari 2018
February 13, 2018 10:09

Bumi Serpong Damai(BSDE IJ)

Indications of a strong first quarter

We reiterate our BUY call on BSDE with target price of IDR2,000. We believe upside for BSDE to remain considering expectation of encouraging marketing sales up to 1Q18 that is expected to reach IDR1.6tn, equivalent to 22.2% of the targeted marketing sales this year (IDR7.2tn, -0.5%yoy compared to achievement in 2017), thanks to commercial land plot sales as well as strong proceed from three products launching in January and February 2018. At the moment, BSDE is trading at 71.4% discount to our NAV, higher than its historical +1SD discount of 70.0%.

Aims for IDR7.2tn marketing sales. This year, BSDE aims to record marketing sales of IDR7.2tn, which still will be mainly contributed from the residential land sales in BSD City (26.4%), commercial land plot sales in BSD City (25.0%). Should we exclude the commercial land plot sales transaction in 2017, land sales to JV in 2017 as well as targeted commercial land plot sales in 2018, we notice that BSDE aims for 64.4%yoy marketing sales growth. To achieve this target, the company includes marketing sales target from new project launchings, including (i) The Zora (landed residential project, JV with Mitsubishi) amounted to IDR200bn, (ii) Klaska apartment in Surabaya worth IDR400bn, and (iii) Southgate apartment worth IDR500bn. The management’s marketing sales target was inline with ours of IDR7.2tn.

Expecting a stellar marketing sales achievement in 1Q18. The company indicates that it will record strong marketing sales performance in 1Q18 of at least IDR1.6tn, flat on yoy basis. This performance accounts for 22.2% of the management’s and our marketing sales target. The strong performance will be mainly contributed from (i) launching of The Zora in end January 2018 (84 units available for sale, 32.1% take up rate, price ticket of IDR3.8-7.1bn/unit, total proceed of IDR120bn, (ii) launching of Jadeite cluster in early Feb 2018 (67 units available for sale, 89.6% take up rate, price ticket of IDR4.2-11.7bn/unit, and total proceed of IDR280bn), (iii) launching of Klaska apartment in early Feb 2018 (1,043 units available for sale, 76.7% take up rate, price ticket of IDR470-2,395mn/unit, total proceed of IDR400bn), (iv) marketing sales recognition from Southgate launching in November 2017 (300 units available, 43.3% take up rate, price ticket of IDR1.5-3.9bn/unit, total proceed of IDR200bn), (v) commercial land plot sales of IDR600bn.

Reiterate our BUY call. We reiterate our BUY call on BSDE with unchanged target price of IDR2,000 (SOTP based valuation with WACC of 13.3%, terminal growth of 4.0%, and 68% target discount to NAV). Our target discount to NAV was nears to the historical +1SD discount to NAV of 70%. At the moment, BSDE is trading at 71.4% discount to our NAV. We believe the upside remains considering expected stellar marketing sales achievement in 1Q18.

… read more 20180213 BSDE