April 08, 2025

BKSL’s Growth Momentum: Investor Confidence, Tourism Expansion, and Stronger Financial Position

Market Commentary

0 comments

The recent exclusion of BKSL (PT Bukit Sentul) from the FCA appears to have sparked renewed investor confidence, as reflected in the surge of its stock price and trading volume. This development suggests that market participants view the change positively, possibly interpreting it as a sign of improved regulatory standing or reduced restrictions on the company.
With increased investor interest, BKSL now enjoys greater liquidity, making its stock more attractive to both institutional and retail investors. This heightened market activity could open doors for strategic opportunities, such as easier access to funding, potential business expansions, or restructuring efforts.

BKSL Share Price

BKSL has rapidly grown into a leading property player, appointing Claudia Ingkiriwang as the "Mayor" of Sentul City to drive further expansion. With a proven track record in tourism and development, she focuses on enhancing infrastructure, sustainability, and stakeholder engagement.
As a hands-on leader, Claudia strengthens township management by fostering consumer relationships, streamlining processes, and implementing business-friendly policies. She is also spearheading a tourism board to promote Bukit Sentul’s hidden gems, such as Bidadari Waterfall, aiming to make it a premier tourist destination. Increased visitor traffic is expected to boost business activity, drive property demand, and ensure long-term community growth.
Leading this transformation is Claudia Ingkiriwang, an experienced business leader with a strong background in tourism and urban development. As Mayor of Sentul City, she is enhancing infrastructure, security, and essential facilities while also spearheading efforts to position Sentul as a premier tourism hub. Her initiatives include the Sentul City Tourism Board, launched in August 2024, to promote attractions like Bidadari Waterfall and Gunung Pancar, driving visitor traffic and economic growth. These efforts aim to solidify Sentul City as a thriving, well-integrated urban and tourism destination.

Stronger Mortgage Provider Support Driving Growth
Also, A significant shift in consumer payment preferences has enhanced BKSL’s cash flow, with 67% of buyers choosing mortgages or cash payments in 2024, compared to 53% in 2023. Increased trust with mortgage providers has led to a rise in participating banks from 4 in 2023 to 8 in 2024. Additionally, initial cash disbursements upon signing the credit agreement (Perjanjian Kredit) increased from 30% to 50% of the loan value. These financial improvements have strengthened BKSL’s working capital, enabling a faster project rollout, including plans to launch 14 new projects in 2025.
A significant shift in consumer payment preferences has enhanced BKSL’s cash flow, with 67% of buyers choosing mortgages or cash payments in 2024, compared to 53% in 2023. Increased trust with mortgage providers has led to a rise in participating banks from 4 in 2023 to 8 in 2024. Additionally, initial cash disbursements upon signing the credit agreement (Perjanjian Kredit) increased from 30% to 50% of the loan value. These financial improvements have strengthened BKSL’s working capital, enabling a faster project rollout, including plans to launch 14 new projects in 2025.
Enhanced Mortgage Drawdown Policy Boosting BKSL’s Expansion
BKSL’s updated mortgage drawdown policy significantly improves its working capital, enabling a faster project rollout, including the launch of 14 new projects in 2025. A key enhancement is the increase in initial cash disbursement at the Credit Agreement phase from 30% to 50%, providing earlier liquidity to fund developments more efficiently.

Transformative payment method choice by consumers

By securing higher upfront funding, BKSL strengthens its financial position, accelerates construction timelines, and supports long-term expansion and sustainable growth.
Typical bank mortgage drawdown new structure

1Q earnings may fall short of expectations due to rising mortgage rates and weak purchasing power. However, the long-term outlook remains positive. We reiterate buy call on BKSL with Rp 250.

Comments

April 08, 2025

March 26, 2025

March 25, 2025