Accomplishment in Marketing Sales Underlined by One-Off Factor
In FY 2017, BSDE succeeded to post the sales of IDR10.4 trillion (+67% y-y), and the net profit of IDR4.9 trillion (+172% y-y). It also achieved the target of 2017’s marketing sales amounting IDR7.23 trillion (+16% y-y).
Of note, the sales of land amounting to IDR3.1 trillion dramatically hiked compared to 2016’s sales land amounting to IDR1.25 trillion was the potent driver for the accomplishment of marketing sales. It indirectly indicated that the sales of residential products underperformed even though BSDE actively carried out the marketing program, such as price lock.
Strengthening Recurring Income
In 2018, it posts a flat target of marketing sales compared to 2017’s target of marketing sales amounting to IDR7.2 trillion. The lagging property sales ahead of the political year, and stagnant demand for property segmented for the middle to high class incomes are the challenges faced by BSDE in 2018.
BSDE buffers the challenges by making use the positive trend of office occupation with a view to strengthening its recurring income. It acquired a number of MSIG Tower and Bakrie Tower’s floors in the end-2017 and the early-2018. We estimate that it is capable of posting FY2018’s recurring income growth of 36%.
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