Mandiri Sekuritas SMRA: FY Result slightly below our consensus (SMRA, Rp850, Buy, TP: 730)

􀂄 SMRA’s booked net revenue FY09 Rp1.98 bn (-5,4% yoy), slightly below our estimates and consensus. The slip mainly due to global economic recession over the year that giving impact to company’s marketing sales target, especially its Serpong property (-10,9% yoy). However, the gross margin increased to 64% FY09, compared to 61% FY08, led to the bottom line grew (+77.8%). For 2010, SMRA targeted growth in net profit by 15%, as this will mainly result from the booked revenue from the newly opened site in Bekasi. SMRA is currently trading at a discount of 14.1% to its NAV. We are currently reviewing our forecast and assumption.