CTRA - Eligible inventory for VAT incentives could reach IDR3.9 tn

CTRA - Eligible inventory for VAT incentives could reach IDR3.9 tn CTRA has a significant inventory of ready-to-sell residential properties that qualify for the VAT incentive, including IDR0.8 tn worth of houses and shophouses and IDR1.0 tn worth of apartments. To maximize the advantages of the VAT incentive, CTRA is actively fast-tracking the construction of unsold houses and shophouses in specific projects. This acceleration is crucial as eligibility for the VAT incentive is dependent on the completion of construction and subsequent handover of units before the specified deadlines. From this strategic movement CTRA could expedite the completion and sale of approximately IDR2.1 tn worth of houses and shophouses across projects. (Source: Company) Comment: We reiterate BUY on CTRA as our top picks in Property sector. The potential eligible inventory for VAT incentives could reach IDR3.9 tn or equivalent to 37% of our projection for 2024F marketing sales. This could potentially accelerate 2024F marketing sales and revenue recognition.