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28 August 2024

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Property: 1H24 Results Round-up

  • Property sector posted solid revenue growth in 2Q24 of 32.4% YoY (BSDE: +68.3%, CTRA: 16.4%, PWON: 14.5%, MKPI: 11.6%), supported by the government’s tax incentive program, which allowed for solid 1H24 pre-sales growth with CTRA achieving 55% of FY target, followed by BSDE and PWON at 51%, and 34% for SMRA (7M24: 39%). On the bottom-line results, BSDE was the best with PWON the weakest within our coverage.
  • The government recently has extended 100% VAT incentive for the housing sector from July to December 2024, which we believe should sustain 2H24 pre-sales growth. CTRA will be the main beneficiary of the VAT stimulus as it has the highest eligible inventory levels (IDR1.5 tn), followed by BSDE (IDR1 tn), PWON (IDR900 bn), and SMRA (IDR500 bn).
  • Despite catalysts from extended VAT incentives and potential lower rates in 2H24, we are neutral on the property sector due to concentration in low-end housing purchases and potentially sticky mortgage rates caused by banks’ aggressive promotions. CTRA (BUY, IDR1,600) is our top pick for its diverse development portfolio and strong marketing sales.

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Property 1H24 Results Round-up

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Property 1H24 Results Round-up

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