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STOCK RECOMMENDATION - JAKARTA. PT Bumi Serpong Damai Tbk (BSDE) recorded a net profit of IDR 1.94 trillion in 2023. This figure is down 20.04% from the profit in 2022.
According to the financial report in the BEI disclosure information, Friday (15/3), the decrease in net profit occurred amid an increase in revenue recorded by BSDE last year.
BSDE recorded operating revenue of IDR 11.54 trillion in 2023, up 12.74% from the previous year's achievement of IDR 10.24 trillion.
BSDE Director Hermawan Wijaya said, revenue from the land sales, buildings, and strata title segments dominated the Company's operating income in 2023.
“At the end of 2023, this segment booked IDR 9.83 trillion, or equivalent to 85.15% of the total Consolidated Operating Revenue,” he said in the disclosure information, Friday (15/3).
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The rental segment was the second largest contributor throughout 2023. The segment recorded operating revenue of IDR 917.69 billion, or 7.95% of the total Consolidated Operating Revenue.
On the other hand, BSDE's cost of goods sold (COGS) was IDR 5.12 trillion as of December 2023. This figure is up 50.39% from the COGS in 2022 which was IDR 3.40 trillion.
The higher growth of COGS compared to the growth of operating income pushed the gross profit to IDR 6.41 trillion. This figure is corrected by 6.07% from the previous year's achievement of IDR 6.83 trillion.
The total operating expenses of BSDE at the end of 2023 were recorded to grow by 12.19% to IDR 3.50 trillion, compared to 2022 which was IDR 3.12 trillion.
As a result, operating profit was corrected by 21.45% to IDR 2.91 trillion last year. Compared to 2022, BSDE's operating profit was IDR 3.71 trillion.
Hermawan explained, the management's decision to invest in potential projects again yielded results.
Because, dividend income grew by 51.01% to IDR 4.97 trillion in 2023, from previously IDR 3.29 trillion in 2022. Meanwhile, interest and investment income grew by 49.56% to IDR 497.14 billion compared to 2022 which was IDR 332.40 billion.
This achievement pushed the pre-tax profit figure to IDR 2.27 trillion at the end of 2023, corrected by 14.73% compared to the 2022 achievement of IDR 2.66 trillion.
“The correction of BSDE's net profit in 2023 to IDR 1.95 trillion was caused by the increase in the cost of goods sold and operating costs,” he said.
Hermawan said, BSDE hopes that the national economy will return to normal after the 2024 Election.
“The Company's cash and cash equivalent position of IDR 9.43 trillion and inventory of IDR 14.31 trillion will be a positive provision for the Company to continue sustainable growth,” he said.
Investment Analyst Stockbit Securities Arvin Lienardi said, BSDE management said in the Investor Release that the decrease in gross profit margin occurred due to much lower land and building sales margins, and a higher composition of apartment sales.
“Apartments themselves have a much smaller margin than landed houses,” he said in dated research, Friday (15/3).
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Operationally, BSDE recorded marketing sales of IDR 9.5 trillion during 2023, 7.9% higher than the 2023 target at the level of IDR 8.8 trillion. In 2024, BSDE management also targets marketing sales of IDR 9.5 trillion.
According to Arvin, the results of BSDE's 2023 performance which is below consensus have the potential to become a negative sentiment for the Company's stock price movement in the short term.
“However, we believe that BSDE's marketing sales will remain solid in the future supported by the Government-Borne VAT (PPN DTP) incentive,” he said.
On the other hand, the property sector also has the potential to get a positive sentiment from the opportunity to cut interest rates, which is expected by the market to occur in the second or third quarter of 2024.
Historically, property issuer stocks tend to move positively significantly when interest rates have reached their peak and are about to be cut.
However, the high inflation of the US consumer price index is still around 3%. This makes the market's expectation of The Fed's interest rate cut in June 2024 increasingly small.
“Meanwhile, the timing and magnitude of interest rate cuts from Bank Indonesia will be influenced by the release of economic data such as inflation, economic growth, and the exchange rate of the rupiah,” said Arvin.
Capital Market Observer and Founder of WH Project, William Hartanto said, the movement of BSDE shares is currently in a downward trend with support level at IDR 920 per share and resistance at IDR 1,045 per share.
William recommends a wait and see for BSDE. If there is strengthening, the target price of BSDE is at the level of IDR 1,045 per share.
MNC Securities Analyst Herditya Wicaksana sees, the movement of BSDE shares is currently moving at the support level of IDR 925 per share and IDR 990 per share.
Herditya also still recommends a wait and see for BSDE, because there is no reversal signal for the BSDE stock price yet.
