SMRA’s net profit grew 79% YoY to IDR1.34 trillion in FY24. This growth aligns with revenue growth of 60% YoY to IDR10.62 trillion in FY24

Performance improvement is accompanied by stable funding quality. SMRA’s marketing sales increased by 62% QoQ in FY24, supported by the beginning of project sales in Summarecon Tangerang in 4Q24.

Three hundred ten units (5% of the landbank) in Summarecon Tangerang have been built, with 124 units sold in FY24.Thus, the continued development of Summarecon Tangerang can support SMRA’s marketing sales in the future.

Government stimulus has the potential to optimize SMRA’s marketing sales achievement. SMRA targets marketing sales to reach IDR5 trillion in FY25. This target is a 15% increase compared to FY24.

We estimate SMRA’s fair value to be 600 (5.17x expected P/E FY25F and 65% discount to NAV) using discounted cash flow and revalued net asset value methods. Considering SMRA’s fair price and performance, we maintain our buy rating for SMRA with a potential upside of 59.21%.

By PHINTRACO SEKURITAS | Research
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