SMRA’s net profit declined by 41% YoY to Rp549.6 billion in 9M25. This decline was mainly driven by a 15% YoY decrease in revenue to Rp6.41 trillion in 9M25.

On the other hand, SMRA’s recurring income increased by 8.1% YoY, driven by a 7% YoY rise in the mall and retail segment in 9M25.

The performance improvement was accompanied by stable funding quality at SMRA. SMRA’s marketing sales increased by 34% YoY in 9M25 (71% of the FY25 target), supported by the Serpong area, which contributed 44% of total marketing sales in 9M25.

Government stimulus is expected to optimize SMRA’s marketing and sales performance. SMRA targets marketing sales of Rp5 trillion in FY25, a 15% increase from FY24 realization. Marketing sales reached Rp3.57 trillion in 9M25, equivalent to 71% of the FY25 target.

Based on SMRA’s performance, using the Discounted Cash Flow and Revalued Net Asset Value methods, we maintain a Buy rating on SMRA with a lower fair value of Rp540 per share (5.17x expected P/E and a 65% discount to NAV), revised down from Rp600 per share, implying a potential upside of 41.36%.

By PHINTRACO SEKURITAS | Research
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