$Sinarmas Land(A26.SI)
Is this just a Wayang Kulit or a Buried Gem?

I think there is more meat hidden in it with the stock trading at mulit-year low. Not only has the price hit a strong bottom support level at 40c, the dividend has gone up 4 times higher compared to the past 2 years, highest since 2006 when it was still the AFP Land, and it's only the interim, you know, that means we can still expect a final dividend this coming FY. PER ratio will be further lowered in FY with the disposal completion of Orchard Tower last year. 2 trading houses have a target price of 73c and 95c, taking a discount from their calculated RNAV.

According to RHB report in 2016, their stake in BSD project is already worth more than their current capitalisation, their Indonesia housing sales produced good results due to the price lock promotion in the last quarter. The project in Batam Nusava Bay seems to be progressing well. Plus, they have been investing aggressively in London properties, which will improve it's recurring earning base. Certainly, I think there is a higher possibility of further upside than downside. There has been talk about the company setting up a reit either in indonesia or Singapore for the past 2 years or so, but it never materialised, I think the market starts to get impatient and hence the low share price, of course there are also the currency and political risks with the upcoming election.

I have been buying up Sinarmas Land in the range of 40.5 to 42 cents since last year November, and the only thing I need to do is to wait for the wind to blow again to unearth the gem.

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12 likes 112 comments
opy

Congratulations!

ozxinvest

Reply to @TUBInvesting : Thks just above water now. Hopefully will continue to trend up.

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ozxinvest

Strong balance sheet and final dividend of 0.7c ( total dividend of 1.5c for FY17 ). About 4% yield at last done price. Focusing on recurring income would mean dividend would be more stable in future. Swee!

ozxinvest

In tandem with higher revenue contribution and stronger operating performance from its
Indonesia division and an exceptional gain from the divestment of Orchard Towers, the
Group’s PATMI surged 412.5% to S$238.2 million in 4Q 2017 and jumped 209.8% to S$356.0
million in FY 2017.
The Group’s balance sheet continues to remain strong as at 31 December 2017. The Group’s
total assets increased by S$482.9 million to S$6,562.8 million due to the acquisition
investment properties, namely 33 Horseferry Road in Central London and Sinarmas MSIG
Tower in CBD Jakarta, while cash and cash equivalents stands at S$930.3 million with a net
debt to equity ratio of 14.6%. Total borrowings increased by S$166.0 million to S$1,525.0
million mainly due to debt incurred on the acquisition of investment properties and
borrowings for capital expenditures. Only approximately 13.6% of the total borrowings or
S$208.1 million are repayable within one year.
As a result of the stellar performance for FY2017, SML is proposing a special final dividend of
0.7 Singapore cents per share, in addition to the interim dividend of 0.8 Singapore cents per
share which was paid in December 2017.

ozxinvest

https://m.kontan.co.id/news/bsde-perkiraka...
PT Bumi Serpong Damai Tbk (BSDE) expects to book higher-than-estimated earnings on analysts by 30% higher.

ozxinvest

https://m.kontan.co.id/news/sinarmas-land-...#
Continues to acquire office space for recurring income.

ozxinvest

https://m.cnnindonesia.com/ekonomi/2018021...

Jakarta, CNN Indonesia - Sinar Mas Land claims to be conducting an assessment with PT Mass Rapid Transportation (MRT) to participate in the extension of MRT route to Serpong, South Tangerang. 

"As we are exploring, we do not talk much about it", Sinar Mas Land Strategic Development & Service CEO Ishak Chandra said on Tuesday (13/2). 

Meanwhile, Director of PT Bumi Serpong Damai Tbk (BSDE), Hermawan Wijaya revealed, extension of MRT route to Serpong would be profitable for the company

ozxinvest

https://m.cnnindonesia.com/ekonomi/2018021...

Jakarta, CNN Indonesia - Sinar Mas Land plans to add four co-working space this year along with the growth of startup companies that use the place to work. Co-working space is called EV Hive. 

Sinar Mas Land Associate Group CEO, Irawan Harahap said, so far the company already has five co-working space called EV Hive. The company's co-working space project began in 2015. 

"Then, in 2017 we added four as well," said Irawan, Tuesday (13/2). The company built one EV Hive in Kuningan area, then three others in Central Business District (CBD). Meanwhile, one EV Hive built in 2015 is in Tangerang.....

On the other hand, Sinar Mas Land is also in talks with the largest provider of co-working space in Singapore to develop co-working space in Indonesia.

ozxinvest

Now it is the potential of political turmoil as it is an election year. Think King Wan KTIS IPO during the Thailand political crisis in 2013/2014.

http://jakartaglobe.id/business/sinar-mas-...

Jakarta. Sinar Mas Land projects the growth of property sales in Indonesia to remain stagnant during the election year as consumers are still taking a wait-and-see approach ahead of potential political turmoil, despite the country's higher economic growth.

"Historically, during election years, Indonesian consumers will hold their appetite to buy property units. But six months after an election, consumers' appetites will improve and that will show an upward trend," Sinar Mas Land strategic development and services chief executive Ishak Chandra said on Tuesday (13/02).

ozxinvest

http://properti.kompas.com/read/2018/02/12...

A rough summary of why I think there is potential in holding this stock, in case I have forgotten about why I bought it as the bears are haunting on the stock.

Sinarmas land owns more than 50% of BSDE, which is the largest cap listed property stock in Indonesia worth 34T, which is currently more than 3B in SGD even if you take into account of the weak exchange rate, it is still worth that much, if I'm did not input wrongly on the number of zeroes as pic attached.

The 50% plus stake of 1.6B is now more than the market cap of sinarmas land in SGX. Not to mention it's stakes in other townships and residential projects in Indonesia which are selling well due to the rapid rising of the middle class, it is also heftily invested in UK properties which could easily amount to 1B in value. It has a cash of about 700M and it just sold off it's stake in orchard towers for 162M. It has announced 0.8c for interim dividend last quarter which is highest in years.

However, the price is being depressed when the markets is having a bull run, and further depressed when the markets is going for a heavy correction and doesn't respond as markets bonuced back.

Have been buying down every cent below 40c. Hopefully the FY results won't disappoint as if the market already know what is about to come?

D2600e706a401795e41f539c976907d92a4db090
ozxinvest

Reply to @lamwenhoup_d : Well I would say I'm not a currency expert but to say the rupiah will devalue by half in the future is simply building castles in air. It could also be the other way round. And probably that scenario would require a very bleak Indonesian economy and worsening political situation, something like the one the Russia has went through, think Food Empire. Is that the case now? I don't think so. Congrats to you if you have shorted it from 38.5 as per your estimation.

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Expiry:
Target Price
$0.44
(+14.29%)
NOW:

$Sinarmas Land(A26) . Aggressive traders recommended to short sell at 38.5c, non-aggressive traders at 42c, stop loss at 44c. I will take this as a cue to bet reverse. :P

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