Company Update I Property / IJ / Click here for full PDF version
Author(s): RyanDimitry ;Anthony
- 1Q24 net profit of Ro48bnr (+17% yoy/-27% qoq) came in-line with cons estimates at 24% but missed ours at 21% from higher interest cost.
- Revenue came at Rp2.3tr (+9% yoy/-13% qoq), in-line with ours/cons' estimates at 24%.
- We are maintaining our Buy rating with a lower TP of Rp1,360/share to reflect the higher-than-expected interest cost in our estimates.
Earnings met consensus, but below ours on higher interest cost
recorded 1Q24 net profit of Rp483bn (+17% yoy/-27% qoq), forming 21/24% of our/consensus FY24F (vs. 3yr average 1Q run-rate of 23%) - below our estimates due to higher-than-expected interest burden, but was in-line with consensus.
Gross margins came in-line with our and consensus' estimates
Gross profit came in at Rp1.2tr (+14% yoy/-18% qoq), in-line with our/consensus estimates at 24%. GPM was 51% in 1Q24 (vs. 48/54% in 1Q23/4Q23) as margins for offices and apartments/malls increased to 51/49% (+1,301/571bps yoy) on the back of changes in product mix and increase in rental rates, respectively.
Revenue was within our and consensus' expectations
Revenue of Rp2.3tr (+9% yoy/-13% qoq) was in-line with our/consensus at 24/23% of FY24F, driven by growth in both non-recurring and recurring segments. In the non-recurring segment, housing revenue came at Rp1.6tr (+7% yoy), while office revenue reached Rp105bn (+208% yoy). In the recurring segment, malls posted revenue of Rp188bn (+17% yoy).
Higher net cash position
Total debt was reported at Rp8tr (-6% yoy/-1% qoq) in 1Q24, while cash rose to Rp10.7tr (+1&% yoy/+1% qoq). This resulted in a net cash position of Rp2.6tr in 1Q24 (vs. a net cash of Rp578bn in 1Q23). The company plans to use its cash for selective landbank expansion in strategic locations and selectively expand its investment property.
Reiterate Buy, with a lower TP of Rp1,360/share
We revised down our FY24-25F earnings by -9% to -10%, mainly to factor-in the higher-than-expected interest expense, and reiterate our Buy rating on with a lower TP of Rp1,360/sh (vs. Rp1,430/sh previously) based on a blended-valuation of P/E multiple (unchanged target of 12x; +0.5 SD) and disc. to NAV target of -57% (unchanged at +0.5 SD). is currently trading at 10.3x P/E and a disc. to NAV at -62%. Downside risks are weak presales demand and purchasing power.
Sumber : IPS
powered by: IPOTNEWS.COM
