Bukit Sentul (BKSL) – Yesterday’s EGM approves non-preemptive right issue plan (BKSL, Rp225, Not rated) - Mandiri

􀂄 Shareholders of BKSL yesterday gave approval to the company on its plan of conducting non-preemptive right issue. The proceeds, targeted at Rp333bn, will be used by BKSL to acquire 100% stakes in PT Aftanesia (Rp2bn), a company which has 95.3ha of land in Karang Tengah, Bogor. For the balance, BKSL will use it for capital injection in Aftanesia (Rp276.81bn), as well as group’s additional working capital (Rp55.1bn)
􀂄 Aftanesia’s land bank is strategically located as it will give easy access from Sentul to Puncak-Bogor once Poros Tengah artery road construction will have been completed. In the meantime, Karang Tengah will be part of Sentul Nirwana’s 1st phase development. The area has an average acquisition cost of Rp100k/sqm. Having Sentul Nirwana launching price two weeks ago been tagged at Rp2.2mn/sqm, 50% GPM is already in hand. We think BKSL can continue reaping higher margin, along with progress of Poros Tengah construction. Note, that the company will also bring-in theme park in the area.
􀂄 BKSL is getting more interesting! The stock currently trades at rock-bottom 70% discount to NAV, an internal appraised valuation that still accounts Sentul Nirwana land at cost.