Mansek SMRA: Seizing the moment

SMRA recorded within hours sold out sales of two new clusters in Serpong anew, launched earlier this month. We continue to like SMRA for its efforts to seize the current domestic strong demand with its aggressive project roll-out via creative marketing. We are rolling out our forecast to 2011, with revised NAV11F of Rp13.1tn. New TP 2011 Rp1,400/share, we see 48.9! % upside on the current price. Buy.

More sold-out clusters. SMRA recorded another stellar achievement with the sales of a total of 450 units from two new clusters in Serpong, launched earlier this month, which was offered at price range of Rp600mn-2bn/unit and unit size of 120-286m2. The company received up to twice pre-order book, with majority demand (60%) looked at the size range of 120-250m2. The company has two new clusters in the works for the re! st of the year, located each in Serpong and Bekasi, which planned to be launched in the Q4 this year. Both clusters will worth of around Rp500bn, which will be in addition to Rp1.76 bn of August preliminary sales number, led to a potential another record-break of the FY10F sales target, which currently set at Rp1.9tn.

Creative marketing. The company introduced a personalized selling programme, wherein buyers have exclusive option of choosing their model house base on the order of preference. On the launching date, there will be a draw to determine the housing unit that they will get. This is also basically offered by third-party brokers for SMRA, thus enhancing its reach among potential buyers. Historically, 60% of sales comes from third pa! rty broke rs. The company plans to maintain this strategy for the foreseeable future

Solid performance, Buy. We applaud SMRA for its aggressive selling drive to seize the opportunity presented by the strong domestic consumption. The strategy which involves third-party brokers to help drum up pre-sales oders, led to impressive data sales so far. 1H10 results saw earnings surge of 45.7% yoy, in line with our expectation, with net margin growing 32.7% from 27.1% in the same period last year. We ar! e rolling our forecast to 2011, coming up with revised NAV11F of Rp13.1tn. With new TP 2011 Rp1,400/share, we see 48.9% upside on the current price. Buy.