Contact our analyst Eka
42% Upside, Keep Buying
3rd November 2021
Price Rp 226
Target price Rp 320
Investment Consideration
Double-digit sales growth
- In 3Q2021, DMAS achieved double-digit revenue growth +81% YoY or 1475% QoQ to IDR 727.4 billion. For 9M2021, DMAS booked revenue of IDR 1.3 trillion, +99.6% YoY.
- Industrial estates are still the main contributor with revenue of IDR 707 billion, up 99% YoY, and 97% of total revenue in 3Q2021. For 9M2021, industrial estate revenue increased 113% YoY to IDR 1.14 trillion. Residential contributed IDR 110 billion, an increase of 206% YoY, while commercial revenue declined -39% YoY to IDR 39.5 billion.
- Industrial estate margins decreased to 56.4%, Commercial margins decreased to 62.1% from 79.9% , while residential margins dropped from 64.7% to 54.8% in 9M2021.
- For 9M2021 marketing sales, DMAS booked IDR 1.25 trillion, or 62.4% of the 2021 marketing sales target. Industrial estates are still the largest contributor of marketing sales with 96% of the total.
- In 4Q2021, there are more inquires for industrial estates of around 70ha, mostly for data centers.
- The demand for industrial estate is still growing in 2021 and we expect more growth next year in line with a the recovering economy.
3Q2021FY Results: Margin down YoY, higher QoQ
- In line with double digit revenue growth, DMAS booked net profit of IDR 346 billion, up 55% YoY or 1,839% QoQ. However DMAS’s net profit margin decreased to 47% in 3Q2021, but was still higher compared to 2Q2021’s 38.6%.
- Gross profit grew +57% YoY or 1,315% QoQ to IDR 404.9 billion with a GPM of 55.7%, lower compared to 64% in 3Q2020.
- Operating profit also increased +59% YoY to IDR 338.5 billion with a higher operating profit margin of 46.5% compared to an operating loss in 2Q2021.
- As we expect industrial estate demand to keep growing, we are targeting DMAS 2021 revenue to reach IDR 2.75 trillion or +5% growth.
Valuation: Maintain BUY TP 320, 42% Upside
- We update our calculation of DMAS RNAV/share to 655, we are targeting DMAS share price to trade at a 66% discount to RNAV/share or 320 which is a 10x PE 2022F and represents 42% upside. We recommend to BUY.