Hopeful for a stronger recovery- MayBank Kim Eng
Strong 3Q20 presales; reiterate POSITIVE view
The strong presales recovery in 3Q20 at +63% QoQ looks promising as it was driven by first-time homebuyers in the low-middle segment; there may be upside to developers’ FY20 presales targets. Meanwhile, the Jakarta government has relaxed the lockdown policy (PSBB) which is positive for mall owners (PWON & SMRA). Reiterate positive view on the sector while valuations are still not implying any recovery. Our pecking order: PWON, CTRA, SMRA and BSDE.
Better than expected presales recovery
Many developers reported a strong and consistent recovery in their monthly presales since the lows in Apr-May 2020. New project launches in the quarter were well absorbed despite many being conducted virtually. 9M20 presales of most developers formed more than 75% of their FY20E presales targets; there could still be further upside for the full-year achievements.
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