Hits and misses
SSIA IJ / SSIA.JK | ADD - Maintained | Rp545.00 tp:Rp700.00â–Ľ
Property Devt & Invt
Author(s):Aurelia BARUS +62 (21) 3006 1721, Namira LAHUDDIN
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â– The good news: SSIA has secured additional land bank in Subang IE (total now: 900ha) while waiting to bid for the Patimban access toll road concession.
â– Unfortunately, land sales of existing IEs are slow. We cut land presales/revenue forecasts in FY18F to 5ha/4ha, with unchanged land ASP of US$120 psm.
â– Meanwhile, it is in preliminary talks to sell its remaining SCI phase IV land bank.
â– Despite windfall cash from Cipali toll road sale, SSIA's dividend payout would be less than 10% (lower than historical range of 15-20%).
â– We cut FY18F-19F core EPS by 39-56% and lower our TP to Rp700, still based on 0.85x FY18F P/BV.
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