BSDE - Higher than expected marketing sales

BSDE - Higher than expected marketing sales BSDE’s booked IDR2.75 tn of marketing sales in 4Q23 (+31.7% yoy/+40.4% qoq) resulting a IDR9.5 tn of marketing sales in FY23, surpassing it’s target of IDR8.8 tn for FY23. The strong growth in 4Q23 is due to strong sales to JV company, which contributed to IDR1.87 tn of marketing sales. However, the residential segment experienced a decline in sales, reaching IDR 542 bn (-56.5% yoy/- 62.6% qoq) due to the absence of product launches in 4Q23. For the FY23, the residential segment contributed IDR 5.01 trillion, reflecting a marginal decrease of 2.1% yoy and constituting 53% of the total marketing sales. The commercial segment demonstrated robust performance, contributing IDR 2.62 tn (+25.9% yoy), representing a 28% share of the total marketing sales. The remaining sales were derived from JV land plot transactions, totaling IDR 1.87 tn (16.6% yoy). Comment: We are positive on the news as the marketing sales number came higher than expected. We expect the residential segment potentially to become the growth driver in 2024 due to VAT exemption incentive, from the completion of the township facilities & amenity projects, as well as the completion of some infrastructure in BSD City.