BSDE’s revenue decreased 13% YoY to IDR 8.76 trillion in 9M25. Land and building sales were the primary contributors to BSDE’s revenue (85% in 9M25).

However, this decline in sales was accompanied by a lower decrease in cost of goods sold. Salary expenses also increased 32.5% to IDR 1.8 trillion in 9M25. As a result, BSDE’s net profit decreased 49.5% YoY to IDR 1.36 trillion in 9M25.

Land and building sales remained one of the segments with the highest margins in 9M25. The recreation arena’s gross profit margin was the highest at 72%, followed by land and building sales at 65%, and water management at 65% in 9M25.

We estimate revenue growth of around 2.3% YoY to IDR 14 trillion in FY25E. The loan-to-value (LTV) discount and VAT incentives borne by the government, which will continue into 2025, along with BSDE’s reputation for developing its projects, will drive this growth.

We maintain our buy rating for BSDE, with an estimated fair value of IDR 1,140 (previously IDR 1,185) and a potential upside of 16.33%. This fair value is derived using DCF and RNAV methods and reflects a 10.55x expected FY25F P/E and a 65% discount to NAV.

By PHINTRACO SEKURITAS | Research
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