Bumi Serpong Damai (BSDE IJ): Weak result – “Buy maintained” June 5, 2018

Lower than expected 1Q18 results

BSDE reported revenues of IDR 1.7 tn (-5.79% YoY) with net income plunged by 45.31% to IDR 407 bn (vs IDR 745 bn in 1Q17). Revenue and net income equal to 15.38% and 7.87%
run-rate to our FY18 estimate.

GPM improved to 68.35% (vs 66.54% in 1Q17), while OPM dropped to 39.08% (41.77% in 1Q17) mainly due to cost increase in ads & promotion (+15.66%) and also salaries (+20.63%). NPM fell to 23.93% (vs 41.22% in 1Q17) due to a FX loss of IDR 63.35 bn, compared to 1Q17 which recorded a gain of IDR 18.62 bn.

Robust marketing sales

Marketing sales in 1Q18 jumped to IDR 2.5 tn (+58% YoY) in which IDR 1.6 tn came from commercial projects. IDR 700 bn came from Klasika Residence Surabaya and Southgate Apartment in TB Simatupang, while the rest came from a commercial project in BSD City.

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