DMAS April 2021

DMAS

Contact our analyst Eka

40% Upside
1st April 2021
Price Rp 236
Target price Rp 330

Expecting higher demand

In 2020FY, DMAS booked revenue of IDR 2.63 trillion slightly lower -1% YoY but above our estimate. 2020 marketing sales also exceeded the management target of IDR 2 trillion at IDR 2.39 trillion.
Most of DMAS’ marketing sales are to F&B companies, Data Centers, Warehouses, and Auto/Auto related.
Industrial estate are still the main contributor with revenue of IDR 2.47 trillion, 94% of the total. Commercial contributed IDR 79 billion, 2.9% of the total, and residential contributed 2.1% or IDR 5 4 billion. Industrial estate margins were stronger at 60.8%, higher than 2019’s 50.6%. Commercial margins increased to 79.7% from 73.3% in 2019.
In early 2021, DMAS had lots of inquiries from companies engaged in Auto & auto related businesses, data centers, and others.
The positive sentiment from the Omnibus law has proven to increase demand and marketing sales in 4Q2020. We are expecting industrial estate demand to continue as the Patimban port has started operating in November 2020 and there are also more infrastructure project (LRT, HSR, toll roads) around DMAS’ projects.

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2020FY Results: Above expectation

As revenue slightly decreased, DMAS managed their cost of revenue which decreased -13%. The result was a higher gross profit +9% YoY to IDR 1.62 trillion and a higher than expected GPM at 61.4% in 2020 compared to 56% in 2019.
Operating profit also increased +7% YoY to IDR 1.32 with a higher operating profit margin of 50.3% from 46.5%.
Amid the covid-19 outbreak, DMAS maintained their positive bottom line growth of +0.95% YoY to IDR 1.35 trillion. The net profit margin increased slightly to 51.3%.
As we expect industrial estate demand to keep growing in 2021, We are targeting DMAS revenue to reach IDR 2.89 trillion or +10% growth.

Valuation: BUY with 40% upside

We upgrade our target price to IDR 330 to be reached within one year. The target translates to 10x PE, and gives 40% potential upside. We recommend to BUY.

Previously

DMAS July 2020

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