Mandiri Sekuritas Bumi Serpong: 1Q10 net earnings inline with ours and consensus (BSDE, Rp840, Buy, Rp1,100)

􀂄 BSDE reported net income of Rp82bn (+55%yoy) on the back of realized revenues of Rp311bn (+48%yoy) in 1Q10. 1Q10 net earnings came within ours and consensus estimates. With a revenue mix largely catered to residential properties which accounted for 70% of realized revenues, the company saw an improvement in both gross and operating margins.

􀂄 Additionally, BSDE attained 1Q10 marketing sales of Rp545bn, which represents about 27% of FY10F marketing sales target of Rp2tn. As a principal beneficiary of low interest rates and strong demand from the middle income segment, we think our FY10F earnings growth of 22%yoy can be reasonably achieved. This year the company plans to build some 2,000 housing units divided into clusters with 150-200 housing units. We maintain buy as the stock currently trades at a 46% discount to NAV10F.