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31 October 2024

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SSIA: BUY (Maintain) – TP: IDR 1,650 – 3Q24 Results

Our take on the results (In-Line)

  • Strong 3Q24 revenue growth of +28.6% YoY, primarily driven by construction revenue (54% of top-line), which rose +58.2% YoY thanks largely to Subang Smartpolitan Package 2 project. Furthermore, industrial estate sales (19% of revenue) jumped +497% YoY, supported by land sales for Patimban toll road.
  • As of 9M24, industrial estate bookings stood at IDR 387bn, lower than the secured marketing sales of IDR 1.7tn (142 ha). However, we anticipate a surge in sales upon the handover to BYD in 4Q24, as BYD had purchased 108 ha of land in Subang Smartpolitan for its EV manufacturing facility.
  • On the balance sheet side, -41.7% YoY decline in Interest-bearing debt to IDR 831bn in 9M24 enabled SSIA to become a net cash company.
  • Looking ahead, we expect SSIA's short and medium-term growth to be driven by BYD-related investments into Subang Smartpolitan, leading to further earnings improvements. Regarding valuation, SSIA’s NAV currently stands at IDR 4,100/share, reflecting 70% discount to current price. BUY.

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SSIA 3Q24 results

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SSIA 3Q24 results

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