BUY Target Price : IDR 1.115 Stop Loss : Below 865 (-6.

4%)
Market Price : IDR 925 (Per 5/8/2022) Potential Upside : +20.5% Risk:Reward : 1:3

FUNDAMENTAL VIEW

2021 Performance
Figure 1.1 Big Caps in Property Sector PT Bumi Serpong Damai Tbk (BSDE) recorded a profit growth for the year
of 378.74% to IDR 1.35 trillion throughout 2021. High consumer interest
Market Cap
and property sector incentives provided by the government are positive
BSDE Rp19.37T catalysts for BSDE's business revenue growth throughout 2021. As
additional information, the previous year, BSDE posted a net profit of only
PWON Rp22.15T
IDR 281.70 billion.
CTRA Rp17.17T
Performance in 2021 will certainly have a positive impact on BSDE, which
SMRA Rp10.24T
will be allocated to strengthen the capital structure for project development
Source: RTI Business and investment in the future.

As of the end of 2021, BSDE is currently supported by a total asset position

of IDR 61.47 trillion, including cash and equivalents of IDR 7.77 trillion
and a net gearing ratio of 11.72%.

Q1 2022 Performance
In the first three months of 2022 BSDE recorded operating revenues of IDR
2.03 trillion. This revenue is equivalent to a growth of 21.43% when
compared to the same period in 2021, which is IDR 1.67 trillion.

However, BSDE recorded a decrease in net profit in the first quarter of

2022. Profit attributable to owners of the parent company decreased by
42.01% YoY from IDR 599.95 billion to IDR 347.90 billion. Based on the
company's financial report, the decline in profit also occurred as BSDE's
operating expenses jumped 32.06% YoY from IDR 476.25 billion to IDR
628.94 billion.

In the same period, the asset value of Bumi Serpong Damai jumped from
IDR 61.47 trillion to IDR 63.13 trillion. The company's liabilities increased
from IDR 25.575 trillion to IDR 26.903 trillion. The company's equity
increased from IDR 35.893 trillion to IDR 36.229 trillion.

Q2 2022 Performance
BSDE recorded revenue of IDR 3.83 trillion in the first half of 2022. This
figure increased by 17.85% compared to the same period the previous year,
IDR 3.25 trillion. However, the significant increase in cost of goods made
profit growth limited.

Cost of goods was recorded at IDR 1.46 trillion, a significant increase of

37.37% on an annual basis from the previous IDR 1.06 trillion. Gross profit
was recorded at IDR 2.37 trillion. During this period, selling expenses also
increased 48.05% YoY to IDR 607.45 billion. Meanwhile, general and
administrative expenses rose 11.13% on an annual basis to IDR 609.09
billion. Coupled with the increase in final tax to IDR 136.83 billion from
IDR 106.89 billion, BSDE's operating profit was recorded at IDR 1.02
trillion. This revenue decreased 9.19% on an annual basis from the previous
IDR 1.12 trillion.

Ongoing Innovation/Projection
Until the end of 2021, BSDE has land under development worth IDR 11.85
trillion, the largest of which is in BSD City which is currently in “Phase III”
development with a value of IDR 4.61 trillion. In addition, BSDE also has
land reserves of 3,867 ha throughout Indonesia. Of course, this is a
provision for BSDE to continuously improve its performance.

BSDE is expected to obtain a positive performance until the end of 2022,

both in terms of operating income and profit. This optimism is supported by
the company's real estate inventory position until the end of March 2022.
 BSDE's real estate inventory per quarter I/2022 reached IDR 5.73 trillion,
which consisted of land and buildings ready for sale and buildings under
construction.

The amount of inventory illustrates the potential of BSDE on the prospects

for future operating income performance. Overall, total BSDE inventories
reached IDR 12.04 trillion, an increase from the position at the end of
December 2021 of IDR 11.85 trillion. This inventory includes land under
development worth IDR 6.32 trillion.

Valuation

Figure 1.2 PBV Big Caps Property Sector Using relative valuation, comparison of PBV with another companies in
one industry such as PWON, CTRA, and SMRA. Relative valuation is used
PBV
to find “undervalued stocks” based on indicator used -> PBV (Price Book
BSDE 0.61x Value).

PWON 1.38x
Based on PBV, BSDE is the undervalued stock compared to PWON,
CTRA 0.98x CTRA, and SMRA. The order of the cheapest stock based on PBV are:
• BSDE
SMRA 1.15x
• CTRA
Source: Investing, Bloomberg Terminal • SMRA
• PWON
Figure 1.3 PBV BSDE vs Industry

BSDE Industry Compared with Industry’s PBV (Property Sector), BSDE's PBV lower than
Industry’s PBV. It means, compared to other property companies, BSDE is
PBV 0.61x 0.90x undervalued and very interesting to buy.

Source: Investing, Bloomberg Terminal

TECHNICAL VIEW

On weekly timeframe, since January 11, 2021 until the close of last Friday
(5/8/2022), BSDE tends to consolidate and has the potential to form a
triangle pattern. We estimate that the triangle pattern is the secondary trend
of the primary (bullish) trend.

If we breakdown on daily timeframe, BSDE is very interesting. First, it is at

its horizontal support at the range 875 until 925. This area can be used as an
entry level. Second, BSDE on last Friday's trading (5/8/2022) succesfully
breakout from its minor trendline resistance. Therefore, we estimate that
BSDE will strengthen with the target of the main trendline resistance at the
level of 1.115. Limit the risk if the price breakdown the 865 level.
ATTACHMENT
Attachment 1: Income Statement

Source: investing.com
Lampiran 2: Balance Sheet

Source: investing.com
Lampiran 3: Cash Flow Statement

Source: investing.com

*Disclaimer On