SENTUL CITY

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Financial Statement AnalysisPT SENTUL CITY, Tbk.

Company’s ProfilePT Sentul City Tbk is an Indonesia-based property development and management company.

It builds on 3000 Hectare area and located in a very strategic area at Bogor.

The company engaged in township development called Sentul City which encompasses the activities related to building infrastructures, offering ready to develop land, and provision of support and property management services.

Operated since April 1993, PT Sentul City, Tbk. now has became a major player in property sector.

INDUSTRY ANALYSISPT Sentul City, Tbk.

Current Economic ConditionThe Pros

The global crisis that hampers European countries and United States can be beneficial for Indonesian market as foreign investors are interested to put their money in Indonesia

A stabile loan interest rate also contributes to property market that makes investors less worry about their property investment.

Strong demand of housing from customers reaches 800.000 to 1.000.000 units a year, whilst developers currently only build 200.000 to 300.000 units a year.

Current Economic ConditionThe Cons

Recent central bank policy that stated minimum down payment to 30% and the obligation to report all transactions above Rp 500.000.000 to PPATK (Pusat Pelaporan dan Analisis Transaksi Keuangan) may slow down the growth of property market as customer will have to pay more money as their initial investment.

Fortunately, the obstacles did not act much on the market

COMPANY ANALYSISPT Sentul City, Tbk.

Industry Players and Competition

We see there several real estate companies that on the sector like BKSL, such as:• Lippo Karawaci• Legenda Wisata• Bogor Nirwana• Modernland Realty• Metropolitan Land

Of those companies, 3 may become a potential threat for BKSL (Legenda Wisata, Bogor Nirwana, and Lippo Karawaci). These companies have the similarities to BKSL, seen from the point of view of the distance, average house size, and market segment.

Future Expansions & Today’s FacilitiesBKSL has grown a lot in the five years due to strong macroeconomic and vast consumers demand in Indonesia.

In 2012, BKSL had announced their newest project to add value of their city, such as sentul grand mosque, pasar apung, taman budaya edutainment center, many schools and education centers, sentul highlands golf club, malls and shopping centers, sewages and water treatment plants, hotels, banks, and infrastructures and transportation services.

These projects are expected to complete soon and are predicted to bring more customers who seek easy access facilities offered by BKSL.

Future Expansions & Today’s Facilities

Here below is table of facilities on sentul city:

Financial StabilityAs for year 2011, company’s financial performance showed good result as the profit increased by Rp 70,1 billion (107%) where net income increased by Rp 14,3 billion (3,2%).

Total assets increased by Rp 476,1 billion (9,9%), total liabilities increased by Rp 5,7 billion (o,8%), and total equities increased by Rp 470,4 billion (11,4%)

With both liabilities to assets (13,15%) and liabilities to equity (15,14%) stayed on tolerable amount, there is no worry about the solvency of the company

Business ProspectThe company has started to establish itself as a developer with a strategic role in the development of the Bogor region.

The following are the indicators of the rapid growth of development in the Sentul City are:

Regional and topographical development

factors

Market absorbtion

power

Location and accessability

factors

The land bank factors

Five Porter’s Force

Competitive rivalry within an industry

Threat of new entrants

Threat of substitute products

Bargaining power of

customers

Bargaining power of suppliers

Thank you for your attention..PT Sentul City, Tbk Analysts Team; “Soaring to Excellence”

Bisnis properti mulai keluar dari titik bawah di tahun 2009, dan mencapai titik puncak di tahun 2014. Arah bisnis properti menuju booming, seiring dengan keberadaan empat penggerak perekonomian nasional di tahun 2010-2014.

Pertama disebabkan konsumsi pemerintah dan swasta diperkirakan tumbuh rata-rata 5-7% per tahun.

Kedua, investasi langsung lokal ataupun asing akan tumbuh rata-rata 10-12% per tahun.

Ketiga, nilai ekspor tumbuh rata-rata 10-12% per tahun.

Terakhir, jumlah wisatawan asing dan lokal bertambah rata-rata 10-12% per tahun. "Periode 2010-2012, pertumbuhan ekonomi diperkirakan berkisar 5,S-6.7%. Dan mencapai 7% di tahun 2014. Sedangkan tingkat suku bunga kredit pemilikan rumah (KPR) di kisaran 11-10%. Adapun tingkat BI rate di kisaran 6,5-6.75% tahun ini.

Pertumbuhan harga yang positif tersebut ditunjang sejumlah faktor eksternal seperti kondisi ekonomi Indonesia yang kondusif, politik yang stabil, dan pasokan properti mewah yang terbatas. Selain itu, permintaan konsumen lokal segmen atas meningkat untuk tujuan investasi. "Kenaikan itu seiring dengan meningkatnya jumlah pertumbuhan orang kaya Indonesia ," jelas Fakky.

(Senior Associate Director Knight Frank Fakky Ismail Hidayat)

Kebijakan Bank Indonesia terkait LTV (Loan to Value) 70 persen dan DP naik ke 30 persen, Aturan yang berlaku pada tipe diatas 70 m2 (KPR Syariah), dan bukan termasuk pada kredit perumahan skema pemerintah (FLPP) ini dinilai sebagian kalangan akan menghambat pertumbuhan industry perumahan nasional, dikarenakan 60 persen penduduk Indonesia merupakan first buyer (usia muda) sehingga kebijakan yang tertuang dalam Surat Edaran Bank Indonesia No.14/10/DPNP menyebabkan para calon first buyers akan menunda pembelian rumah. Tetapi dilain pihak BI berargumen kebijakan ini diambil untuk menjaga stabilitas perekonomian nasional berkaca pada krisis finansial yang melanda Amerika yang salah satu penyebabnya adalah kredit macet pada industry perumahan.

Definition of 'Debt/Equity Ratio' A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what

proportion of equity and debt the company is using to finance its assets.

 Note: Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation. 

Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal financial statements as well as corporate ones. 

A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. 

If a lot of debt is used to finance increased operations (high debt to equity), the company could potentially generate more earnings than it would have without this outside financing. If this were to increase earnings by a greater amount than the debt cost (interest), then the shareholders benefit as more earnings are being spread among the same amount of shareholders. However, the cost of this debt financing may outweigh the return that the company generates on the debt through investment and business activities and become too much for the company to handle. This can lead to bankruptcy, which would leave shareholders with nothing.

The debt/equity ratio also depends on the industry in which the company operates. For example, capital-intensive industries such as auto manufacturing tend to have a debt/equity ratio above 2, while personal computer companies have a debt/equity of under 0.5.

Definition of 'Total Debt To Total Assets' A metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt.

Calculated by adding short-term and long-term debt and then dividing by the company's total assets.

Threat of new entry - it gives sustainable profit, so new competitors can come easily - Its expensive to enter the industry - low barriers to entry - most new competitors : dormitory, apartement, house   Supplier power - Suppliers large - Material available - On time of production - On time of shipping

Competitive Rivalry - Price - Facilities   Buyer Power - Price - many products depends on customer needed - Large orders   Threat of substitution - Better place with better access - Price - Better facilities