DMAS Jul2019

DMAS

Contact our analyst Eka

15.9% Upside
31th July 2019
Price Rp 302
Target price Rp 350

1H2019: Strong Results

In the first semester of 2019, DMAS posted revenue of IDR 985.18 billion up by 299.2% compared to 1H2018’s IDR 246.76 billion. Commercial contributed the most with revenues of IDR 598 billion or 60.6% of total revenue, industrial contributed revenue of IDR 374 billion 38% of total, while the remaining 1.4% was contributed by residential, rental and hotels.
Gross profit grew 391.6% YoY to IDR 656 billion with the gross profit margin at 66.6%, higher compared to 1H2018‘s 54.1%. Operating profit grew +896.6% YoY to IDR 572 billion compared to IDR 57.4 billion in 1H2018 with a strong operating profit margin of 58.1%, more than 2 times higher compared to 1H2018’s 23.3%.
Net profit grew 567.2% to IDR 626 billion with a net profit margin of 63.5%, higher compared to 1H2018‘s 38%.
The strong 1H2019 result is mostly due to DMAS’s marketing sales achievements in 1H2019.

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One off Marketing Sales

As of June 2019, DMAS achieved marketing sales of IDR 1.22 trillion, or 97.6% of their marketing sales target for 2019 of IDR 1.25 trillion.
Commercial contributed 60.1% of 1H2019 marketing sales or IDR 732 billion. Industrial and residences contributed 39.4% and 0.4% respectively.
The commercial segment achievement was due to one off sales from Pilar Sinergi BUMN Indonesia (Jakarta-Bandung High-speed rail) with total sales of 10.5 ha.
We are expecting the projects of AEON Mall in Kota Deltamas and Transit Oriented Development project in High-speed Rail Karawang station area will boost development of DMAS’s commercial area 3-4 years ahead.

Valuation: TP 350, 15.9% upside

Our DMAS target price from May 2019 of 295 has been achieved, and we upgrade to IDR 350 per share.
The target represents 22x 2020F PE, and gives 15.9% potential upside. We recommend to HOLD.

Previously