Ample sales pipeline clearly hasn't been priced in; hefty upside from replacement cost standpoint
DMAS IJ / DMAS.JK | ADD - Maintained | Rp150.00 tp:Rp240.00▼
Mkt.Cap:US$497.10m | Avg.Daily Vol:US$0.20m | Free Float:17.70%
Property Devt & Invt
Author(s): Timothy HANDERSON +62 (21) 30061724, Jovent GIOVANNY
Based on our checks, DMAS currently has c.100ha of industrial land sales in the pipeline to be finalised in 4Q and next year.
Management seems confident of executing sales, which indicates attractive earnings and thus dividend prospects (c.9% yield in FY18-19).
We lower our earnings estimates by 27-36%, in-line with the company’s guidance. Maintain Add as it trades c.40% below its replacement costs.
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