Aug 15, 2017 13:18:39

We paid a visit to Sentul City ($BKSL), here are the key highlights:

- Sentul City currently has over 1,900 ha of landbank with 335.6ha available
for near-term future development.

- This year the company will deliver several landed house projects, high rise
apartments, and commercial projects where majority of the products will
have price in the range of IDR280mn – 3bn per unit.

- Management targets FY17 marketing sales of IDR1.2trn, 7M17 achieved
IDR620bn. Management also mentioned that recently Sampoerna group
has bought 10ha of land in the area for IDR240bn that will go into 3Q17
marketing sales.

- There will be LRT station crossing over Sentul City. Thus, the company is
building TOD nearby the station called Centerra superblock with total
saleable area of ~29ha that will consist of:
o Currently operating Pertamedika hospital and Giant Supermarket
o AEON Mall – Operational in Mid 2018 (GFA of 103,414sqm)
o Saffron Residence apartment – 2019
o Office tower
o 5 star hotel

- AEON mall is under long-term rental agreement with the company with
rental fee of
o USD12/sqm – First 5 years
o USD15/sqm – next 5 years
o USD30/sqm – next 5 years

- BKSL’s balance sheet is quite healthy with net gearing of 9%. In addition,
the company targets topline growth of 14.9% CAGR (FY13-21F) while
EBITDA margin is forecasted to contract to 33% in 2021F.

- Using management’s assumption, the stock is currently trading at 36x
FY17F P/E. However, the company did not gave out dividends in the past
except 2013 & 2014. (Yualdo Tirtakencana)