SMRA - In-line marketing sales achievement in 2023

KBVS update
Thursday, 18 Jan 2024

SMRA IJ -In-line 2023 marketing sales 
(Maintain BUY; TP: IDR700)

- In-line marketing sales of IDR4.5 tn (-8.7% yoy) in 2023. SMRA’s booked IDR1.45 tn of marketing sales in 4Q23 (-0.1% yoy/-0.2% qoq) resulting a IDR4.5 tn of marketing sales (-8.7% yoy) in 2023, in-line with our expectation. In Dec ’23, marketing sales surged to IDR826 bn (+3.1% yoy/131.7% mom) contributed by the successful launch of Viola (residential) in Summarecon Crown Gading and Maple (residential) in Summarecon Bogor as well as significant contribution from Serpong area.

- Targeting marketing sales of IDR5.0 tn in 2024F (+11% yoy), aligning with our projection of IDR4.95 tn. SMRA plans to launch several products this year, including new apartment developments in Summarecon Kelapa Gading, the Trevor apartment in Summarecon Serpong, and new housing products in key areas such as Summarecon Serpong, Bogor, Bekasi, Bandung, and Crown Gading.

- Another mid-term potential growth driver. We also saw another mid-term potential growth driver for SMRA after its subsidiary established 2 JV companies with Setiawan Dwi Tunggal that will engage in (1) the development of apartments, residential properties, and shophouses and (2) the operation of a shopping mall.

- Reiterate  BUY with TP IDR700, using DCF-based TP (WACC: 11.2%; LTG: 5%), which implied to 1.1x ‘24F PB and 82.8% discount to ‘24F RNAV.

Regards,
Benyamin Mikael - KBVS Research team