Contact our analyst Eka
36% Upside
4th May 2021
Price Rp 242
Target price Rp 330
Investment Consideration
Triple-Digit Sales Growth
- In 1Q2021, DMAS achieved triple-digit revenue growth which is a good start to the year. DMAS booked +396% YoY growth in revenue to IDR 533.5 billion.
- Industrial estates are still the main contributor with revenue of IDR 436 billion, 81.8% of the total. Commercial contributed IDR 880 million, 0.2% of the total, and residential contributed 17.2% or IDR 91.5 billion.
- Industrial estate margins were stable at 57.9%, Commercial margins increased to 83.6% from 78.2% in 1Q2021, while residential margins dropped from 68.2% to 54% in 1Q2021.
- For 1Q2021 marketing sales, DMAS booked IDR 228 billion, or 11.4% of the 2021 marketing sales target. Most of DMAS’ marketing sales were from 10.4 ha industrial land sales for data centers. There are additional, around 75 ha, industrial estate inquiries from data centers, automotive, and other sectors.
- With this good start in 1Q2021 and strong inquires, we are expecting industrial estate demand to continue growing in 2021.
1Q2021FY Results: Margin Improve
- In line with triple digit revenue growth, DMAS booked net profit of IDR 271 billion or triple digit growth of 407.3% with a higher net profit margin of 50.7% in 1Q2021.
- Gross profit grew +319% YoY to IDR 306 billion with GPM at 57.4%, compared to 67.8% in 1Q2020.
- Operating profit also increased +713% YoY to IDR 255.6 billion with a higher operating profit margin of 47.9% from 29.2%.
- 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: Maintain BUY with 36% upside
- We maintain our target price of IDR 330 within one year. The target translates to 10x PE, and gives 36% potential upside. We recommend to BUY.