Property 23 Agt 2018
Maybank (ZP)
CTRA BUY TP 1500
PWON BUY TP 730
BI still defending IDR; remain NEUTRAL
Bank Indonesia (BI) has raised its 7-day repurchase rate by 25bps to 5.50% and lending facility rate by 25bps to 6.25%. YTD, it has raised by a total of 125bps. Our economist believes that it may raise another 25bps in 4Q18 and 50bps in 2019. We continue to expect a 12% YoY FY18E presales decline from higher mortgage rates (1H18: +37% YoY).
Remain NEUTRAL as sector has likely priced in the negative, at more than -2SD of its 5-year P/BV mean and more than -2SD of its 5-year discounts to RNAV.
For exposure, BUY CTRA & PWON, given resilient market segment for CTRA and high and growing recurring income for PWON
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CLSA (KZ)
SMRA UPGRADE to BUY TP 800 (from sell 775).
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