4Q17 Robust Marketing Sales Growth
SMRA posted the 2017 growth of 4.5% y-y in revenue into IDR5.6 trillion and 16.2% in net profit into IDR362 billion. The rosier performance was underpinned by the marketing sales hiking by 18.5% y-y into IDR3.5 trillion. The launch of a number of residential projects in 4Q17, such as Symphonia, Summarecon Serpong, Summarecon Bandung reflects public interests in its projects.

In 2H18, it will launch residential projects in Serpong, Bekasi, and Bandung areas; indeed, it will start the development of Summarecon Mutiara Makassar by launching 152 residential and commercial units.

Suppressed by Debt
However, in 3 years next, it must face debt stemming from nearly matured bonds. The debt is worth IDR3.3 trillion from 2018 to 2020. In light its cash position and its recent-year performance, we oversee that landbank expansion policies funded by the external fund require to long-term implementation to result in the significant performance.

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