BSDE - 1Q24 Earnings Turnaround, above expectation

BSDE - 1Q24 Earnings Turnaround, above expectation In 1Q24, BSDE booked strong profit growth of IDR1.4 tn (+62.6% yoy, +715% qoq). Strong profit growth was predominantly fueled by enhanced recognition of real estate revenue, which soared by 25.9% yoy to reach IDR3.5 tn, propelled by robust recognition in both residential (68% yoy) and land (72% yoy). Moreover, the gross profit margin witnessed a significant expansion of nearly 600 basis points in yoy basis. (Source : Company) Comment : The performance in 1Q24 exceeded both our internal estimates and street projections, representing 53.6% of our estimate (IDR 2.7 tn) and 56.8% (IDR 2.5 tn) of the street estimate, respectively. Given this robust performance, we may need to revisit our 2024F earnings model, this also considering the optimistic target set by the company of achieving IDR 3.2 tn in net profit for 2024.