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Company Background
PT Bumi Serpong Damai Tbk engages in the real estate
development business and operates through the following segments: Real Estate,
Property, Hotel and Others. Its core project is the BSD City, a satellite city
15 km west of Jakarta. Investment Merits
§ Marketing sales likely to be rejuvenated
FY17F target is estimated
around IDR 7,021 bn which translates around 12% (YoY) marketing sales increase.
We believe BSDE should be able to achieve this target as it will continue to
launch various new CBD projects such as The Elements and Southgate Residence.
Furthermore, BSDE could potentially realize IDR 800 bn of marketing sales from
the sale of Serpong – Balaraja toll road in which will help greatly to
accomplish its marketing sales target.
§ Shifting strategy from luxury to smaller landed houses
BSDE will try to revamp its
target to middle class segment income, by introducing more residential units
with size under 100 sqm. Clusters such as Vanya Park and The Mozia consist more
than 1100 units with an average size around 85sqm and starting price at IDR 1.2
bn.
§ Massive land bank offers flexibility and supports expansion for years to come
With raw land bank amounting more than 3,900 ha, BSDE should be able to maintain development for the next 20 years. The expansion will be backed with BSD City phase II nearing completion and phase III to begin development in the next couple of years.
