Equity Analysis /
Indonesia

ID : Summarecon Agung - Unattractive valuation despite upside risks

    Aurelia Barus
    Aurelia Barus

    Research Analyst

    CGS-CIMB
    12 April 2021
    Published by

    We estimate its Rp1.5tr rights issue plan will be core EPS-accretive (while P/E valuations remain unattractive) but dilute NAV per share. FY21-22F core EPS cut 11-17% due to changes in net interest expense; we have already factored in faster mortgage disbursement by the bank. We would turn positive on SMRA if its presales beat our estimates in FY22F. Hold call retained with a slightly lower TP of Rp870 (61% RNAV discount).