BSDE has shown a stellar performance in FY12 recording a net profit of Rp1.3tn (+53.0% yoy, -2.7% qoq) which is above consensus’ estimates (109.7%). Although the company’s revenue and gross profit are relatively in-line with ours and consensus’ estimates, BSDE gained an edge from lower than expected opex and increasing other incomes.
Booking of marketing sales was the key driver of the growth in BSDE revenue. The company has shown 35% CAGR in marketing sales from 2010-2012. Sales was significantly pushed by hike in ASP particularly in Taman Permata Buana and BSD City. We believe that further ASP boost in Serpong as well as new project launchings will be the key catalysts for BSDE in 2013.
Under opex, we see that BSDE has managed to record a lower than expected selling expense which proven to help the company’s operating income. The company also recorded a one-time gain from subsidiary acquisition of Rp96.6bn as well as gain from sale of property investment of Rp28.1bn. These further helped boosting BSDE’s bottom line.
We see a number of exciting projects coming from BSDE ranging from new residential clusters, JV with Hongkong Land and Aeon Mall Japan, as well as the newly acquired land in Rasuna from ELTY. We believe that BSDE is going to the right direction by taking the opportunity to diversify their product portfolio.
We are still waiting for the company’s full financial statement for further analysis and we will review our forecast. BSDE is currently trading at PE13-14F 23.7-20.7x; 28% discount to RNAV13 vs industry of 30%.