BBTN - Encourages developers to build quality subsidized homes

BBTN - Encourages developers to build quality subsidized homes Bank Tabungan Negara (BBTN) continues to encourage developer partners who build subsidized houses to prioritize building quality. Moreover, considering that Indonesia's earthquake-prone conditions require that residential construction be carried out with strong foundations and structures. According to BBTN, the bank focuses to the building quality of subsidized houses developed by its partners when distributing subsidized home ownership loans (KPR). Most recently, BTN also directly reviewed the Mulia Gading Kencana (MGK) subsidized housing in Cikande, Serang Regency, Banten. This housing development was developed by Infiniti Realty. Mulia Gading Kencana Housing (MGK) is planned to be developed with 2,000 units targeting low-income people (MBR), especially industrial workers. 9Source: Kontan). Comment: We like BBTN plan to encourage its developer’s partners. A better quality means better resale value. Worth noting that we believe BBTN will record another stronger growth from its non-subsidize housing segment and non-housing segment. Maintain BUY with GGM-based TP of IDR1,770, pegged at 0.6x ‘24F P/B, while it trades at 0.4x ’24F P/B or slightly above -2SD hist mean.