Sinarmas Land

Sinarmas Land: In a site visit to two major Sinarmas Land (SML) projects in Jakarta, PhillipCapital returned with more confidence on the company’s outlook. The land development sales performance has been optimistic with average selling price improving steadily over the recent years. With greater clarity in the business climate of Indonesia following the denouement of the presidential election, house believe Sinarmas Land will continue to post healthy margins with the positive real estate market outlook as new President Mr Jokowi will likely push for more pro-business policies and infrastructure developments in coming future. PhillipCapital remains positive on the outlook for SML for: 1) the potential bottom-line growth with land sales from the huge land bank, 2) solid balance sheet with a strong cash holding and 3) expansion of international portfolio for recurring income. House has a BUY with TP of $0.97.