PT Alam Sutera Realty is a property development company. Co. is engaged in the construction and management of residential area, commercial areas, industrial areas, and also the management of shopping centers, recreation centers and hospitality (mixed used development).
Compares key performance metrics against industry peers.
Feasibility Study Results in December to be a Catalyst for this Junior
ASRI’s marketing sales from houses almost doubled yoy in 9M19 (Rp1t), despite a 49% yoy decline in its total marketing sales (Rp1.8t, 51% run rate). We expect additional Rp1t marketing sales to CFLD in 4Q19, which would support >50% yoy growth in ASRI’s 2020 core profit. With its cheap valuation (trading at -1.3SD below its 10-year mean discount to RNAV), we maintain BUY on ASRI with a target price of Rp340, based on a 79% discount to RNAV (-1SD below its 10-year mean).
GREATER CHINA Update China Yongda Auto Services Holdings (3669 HK/BUY/HK$5.61/Target: HK$8.50): Earnings momentum improving on all fronts. Shenzhou International (2313 HK/BUY/HK$106.00/Target: HK$120.00): Multi-year visibility on capacity expansion; upgrade to BUY. INDONESIA Update Pembangunan Perumahan (PTPP IJ/BUY/Rp1,460/Target: Rp2,100): 2020 net income expected to grow by 44% yoy. MALAYSIA Sector Plantation: 3Q19 results wrap-up: Mixed earnings with big disappointment from SDPL on large impairment for Liberia. SOP surprised on upside from all business segments. Results Sapura Energy...
Yongda is improving on all fronts in 4Q19, in new car sales growth, new car sales margins and after-sales service revenue. New car sales growth momentum has recovered in 4Q19, and management has kept 2019 sales volume growth target of 10% (9M19: +9.8% yoy, 3Q19: 5.5%). New car sales gross margin is improving in tandem with the pricing for BMW. After-sales service revenue growth has also picked up in 4Q19. All these imply potential earnings upside. Maintain BUY. Target price: HK$8.50.
KEY HIGHLIGHTS Update China Yongda Auto Services Holdings (3669 HK/BUY/HK$5.61/Target: HK$8.50) Earnings momentum improving on all fronts. Shenzhou International (2313 HK/BUY/HK$106.00/Target: HK$120.00) Multi-year visibility on capacity expansion; Upgrade to BUY. TRADERS’ CORNER WuXi AppTec (2359 HK): Trading Buy Range BOC Aviation (2588 HK): Trading Buy Range
Pembangunan Perumahan (PTPP IJ/BUY/Rp1,460/Target: Rp2,100): 2020 net income expected to grow by 44% yoy. TRADERS’ CORNER Waskita Beton Precast (WSBP IJ): Technical BUY AKR Corporindo (AKRA IJ): Technical BUY
Nippon Indosari Corpindo (ROTI IJ/BUY/Rp1,300/Target: Rp1,525): EPS growth of >50% and >25% projected for 2019 and 2020; At -1SD PE, we recommend BUY (17% upside). TRADERS’ CORNER Lippo Cikarang (LPCK IJ): Technical BUY Jasa Marga (JSMR IJ): Technical BUY
Bank Mandiri (BMRI IJ/BUY/Rp7,175/Target: Rp9,150): ROE target of 18% in 2021 to be driven by 15% yoy earnings growth in 2020-21. TRADERS’ CORNER Wijaya Karya (WIKA IJ): Technical BUY Semen Indonesia (SMGR IJ): Technical BUY