BUMI SERPONG DAMAI

BSDE
Syndicate 5
Members Abdul Karim Soleh | 29318443
Aditya Tejo Widagdo | 29318399
Agung Prasetia | 29318467
Ario Wibisono | 29318454
Bambang Sugiharto | 29318469
Daniel Hasudungan Sibarani | 29318452
Klemen Bayu Pratama | 29318430
Krist Aristotelius H. | 29318484
Nelfriani | 29318473
Rizka Febriana | 29318474
Outline

1. 5-Aspects Analysis
a. Management and GCG
b. Industry and Macro-economy
c. Business Prospect
d. Fundamental Finance
e. Valuation
2. Conclusion
Management and GCG

❏ The Board of Commissioner (BoC) and Board of Directors (BoD), relatively

“clean”, without bad news history. However, we noted that 1 of the BoD
member i.e. Michael Widjaja, the Vice President Director was identified in
the Panama papers.

❏ No law, environmental, or social issues were found related to BSDE.

Management and GCG - Ownership
Management and GCG

● The implementation of good corporate governance has been carried out by the Company on an ongoing
basis. The oversight function has been enhanced by the Board of Commissioners through the Audit
Committee which is assisted by the Internal Audit in monitoring management performance.
● The Board of Commissioners has formed an Audit Committee to implement the oversight function so that
it can be carried out optimally. The Audit Committee is responsible for providing professional and
independent opinions and analysis of operational performance and financial performance achieved by
the Directors to the Board of Commissioners. In carrying out its duties, the Audit Committee is assisted by
Internal Audit, which conducts regular audits of management performance.
● Regular annual meetings are held by the Board of Commissioners and Directors with 80% attendance to
discuss the Company's performance. The Audit Committee also conducts regular meetings with the
Corporate Secretary to discuss the development of the Company and conduct a field review of the
projects being developed by the Company. The Corporate Secretary has a role in bridging the needs for
information, data and interests between the stakeholders and the Company.
Industry Analysis: 2018 General Performance
● PT Bumi Serpong Damai Tbk is an Indonesian real estate developer. Since 1989 the
company has been developing the Bumi Serpong Damai City, located in the Serpong
district in the Tangerang regency nearby Jakarta. Bumi Serpong Damai City is an
integrated residential and business area complete with supporting infrastructure such as
parks, educational centers and hotels. The company is a unit of the Sinar Mas Group, one of
Indonesia's largest conglomerates.
● Recorded a net profit increase of more than five times in the first half of 2019 to Rp 2.09
trillion, up 411.37% year on year (yoy). Posted a Rp 409.22 billion net profit despite only
recording double-digit revenue growth of 15.38% yoy to Rp 3.6 trillion in 1H. The sharp
increase in net profit was boosted by other income which was recorded with a positive of
Rp 638.82 billion from a negative of Rp 409.82 billion in the same period last year, as well as
net profit from associate entities and joint ventures amounting to Rp 138.07 billion.
Meanwhile, operating revenue increase was driven by sales of land and buildings, which
grew 32.14% yoy to Rp 2.59 trillion.
Industry Analysis: 2018 Sales Performance

● Recorded marketing sales of Rp 2.7 trillion during the first half of this year. The biggest
contributor was residential products (45%), followed by the commercial segment (44%).
Residential products (contributed by sales in Mozia, Savia, Greenwich, Vanya Park, Nava
Park, and The Zora) were the main supporters of marketing sales in the first half of this
year, with Rp 1.2 trillion worth of marketing sales.
● Meanwhile, marketing sales from the commercial segment were recorded at Rp 1.2 trillion,
representing 44% of BSDE's total marketing sales in Indonesia in the first 6 months of this
year. The residence sales are supported by the high demand for Southgate Apartments in
TB Simatupang, South Jakarta, Unsur in Rasuna CBD Jakarta, Aerium Apartments in West
Jakarta, Akasa Apartments in BSD City and Upperwest BSD City.
● BSD City still gave the largest contribution to total marketing sales (40%)
Industry Analysis: Stock Performance
Industry Analysis: Other Players
 Macroeconomic Analysis: Key Indicators

The GDP growth is stable in 5% and slightly increase, indicating the increase of purchasing power. The
exchange rate is higher, increasing the purchasing power of expats as potential customer. Declining
interest rate trend makes the housing loan package become more attractive.
 Macroeconomic Analysis: Housing Indicators

The house price is increased, occurred in 5 major cities in Indonesia. However, the housing loan is
increased. It reflects the phenomenon that the demand of houses is so high despite the increase of house
price along the time period.
Prospect

Along with the increasing of productive age population in Indonesia, the GDP also increase. With
this economic condition, the property demand also increase. The company will expand their
business in Jakarta, Surabaya, Samarinda, Palembang, Manado, Makassar and continue to
develop BSD City in Serpong, Kota Wisata Cibubur, and Grand Wisata Bekasi.

The Strategy of PT Bumi Serpong Damai Tbk is to create diversification property portfolio
including housing, office space, commercial industry, entertainment, and education, increase
land reserves in strategic location, use international standard quality for development practices,
and improve the infrastructure including the facilities and accessibilities.
Valuation

Market capitalization : Rp 34,740,288 Mil

Book value : Rp 31,102,661
Mil
ROA : 4.71 %
ROE : 7.94 %
Price Earnings Ratio (PER) : 10.94 x
Price Sales Ratio (PSR) : 3.74 x
Price Book Value Ratio (PBVR) : 0.87 x
Price Cash Flow Ratio (PCFR) : 11.16 x
Fundamental Analysis
1. Liquidity
2. Productivity/Efficiency
3. Solvency
4. Profitability
5. Marketability
Fundamental: LIQUIDITY
The Company has good Liquidity
compare to industry and sector

Company industry sector

Quick Ratio (MRQ) 1.94 1.34 0.04

Current Ratio (MRQ) 3.52 3.18 2.26

Fundamental: PRODUCTIVITY

It has about middle Productivity

compare to industry and sector

Company industry sector

Asset Turnover (TTM) 0.13 0.28 0.01

Receivable Turnover (TTM) 17.18 31.04 13,667.60

Inventory Turnover (TTM) 0.20 6.49 0.82

Fundamental: SOLVENCY

It has fair to good

Solvency

Company industry sector

LT Debt to Equity (MRQ) 48.14 82.84 30.32
Interest Coverage (TTM) 84.97 33.53 14.23
Fundamental: PROFITABILITY
Above Industry

Company industry sector

Net Profit Margin (TTM) 29.25 22.20 32.96

Net Profit Margin - 5 Yr. Avg. 43.25 24.28 32.75

Return on Assets (TTM) 3.79 3.78 2.81

Return on Assets - 5 Yr. Avg. 8.21 4.89 2.81

Return on Investment (TTM) 4.84 5.29 0.32

Return on Investment - 5 Yr. Avg. 11.06 6.79 0.34

Return on Equity (TTM) 5.72 8.46 16.45

Return on Equity - 5 Yr. Avg. 14.24 10.72 17.89

MARKETABILITY

Still worth to buy

Company industry sector

P/E Ratio (TTM) 17.46 60.89 21.14

Price to Book (MRQ) 0.99 1.21 3.14

Conclusion
BSDE is a good company to invest, because:
1. It has highly capable management team and good GCG practice, regardless
of the Panama paper case.
2. Real estate sector is rapidly growing, supported by the growing of national
economy on related macroeconomic indicators.
3. It has good business prospect and so far it has realize its project as planned
on the prospectus and annual reports
4. It has fundamentally strong financial performance and stability
5. It is a highly valued company
 Thank You

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