SMRA’s net profit grew 43% yoy to IDR933 billion in 9M24. This growth is in line with revenue growth to IDR7.5 trillion in 9M24.

Better funding potential. SMRA made a non-cash deposit in the form of mall assets to its subsidiary PT Summarecon Investment Property (SMIP) on June 26, 2024.

The government-borne VAT incentive (PPN DTP) can potentially optimize SMRA’s marketing sales achievement in FY24F.

Net profit is estimated to grow around 42% yoy in FY24F. The residential property segment is expected to continue contributing to this achievement, along with the potential stimulus from the government, the massive launch of new housing and clusters after the election, and high interest rates.

Using discounted cash flow and revalued net asset value methods, we estimate SMRA’s fair value to be 770 (8.61x expected P/E FY24F and 50% discount to NAV). Considering SMRA’s fair price, we give SMRA a buy rating with a potential upside of 35.62%.

By PHINTRACO SEKURITAS | Research
– Disclaimer On –