Property Performance Is Recovering, Watch These Stocks

Illustration. (Photo: Doc. Antara)

JAKARTA - From several financial reports for the first quarter of 2022, property companies show improvement in performance, especially in terms of income. The signal was captured by market participants by making an accumulation of purchases on how many shares of property issuers stock.

As for the performance of property issuers who experienced an increase, PT Ciputra Development Tbk (CTRA) posted revenue growth of 20.75 percent, PT Bumi Serpong Damai Tbk (BSDE) posted revenue growth of 21.4 percent on an annual basis in the first quarter of 2022. Then PT Summarecon Agung Tbk (SMRA) experienced a revenue increase of 37.2 percent on an annual basis in the first quarter of 2022.

This is also followed by the income of lower-middle-class property issuers. For example, PT Trimitra Propertindo Tbk (LAND) experienced a 55.5 percent annual increase in revenue in 2021.

Interestingly, the Equity Securities of PT Trimitra Propertindo Tbk (LAND) experienced a 90 percent increase in one month of stock trading after reaching its lowest level for 4 years being listed on the Indonesia Stock Exchange (IDX).

According to MNC Sekuritas analyst, Herditya Wicaksono, the property sector has started to recover. Starting from the rotation sector in the JCI, then from the growth of mortgages in the banking sector and relaxation of PPKM, it is suspected that this will turn the Indonesian economy again.

"Furthermore, the extension of the VAT subsidy is also expected to be a positive catalyst for the property sector," said Herditya, quoted on Tuesday, May 24.

However, he reminded investors that they also need to pay attention to the increase in raw materials or basic commodities due to the increase in global commodity prices due to the conflict between Russia and Ukraine.

"On the other hand, market players can also observe the possibility of an increase in interest rates in the second semester of 2022," he said.

Similarly, the Director of Investa Saran Mandiri, Hans Kwee explained, property sector shares will start to rise after the COVID-19 pandemic. However, he said, in general, property shares have not increased much.

"It feels like the property sector has just started to move after the pandemic, so it won't go up much," he said.

Hans assessed that the current performance of the property sector was also affected by depressed purchasing power. While specifically for LAND, he admitted that he had not seen any positive sentiment from the fundamental side.

"I'm looking, there are no fundamental factors," said Hans.

Herditya also assessed that LAND, technically, its movement since March 2022 has experienced a significant increase.

"For today's movement, we estimate the correction that occurs is a fairly reasonable correction considering the significant increase," he said.

He continued, it can be seen from MACD and Stochastic which started to enter their overbought area.

"As long as it is still above IDR142 as support, LAND has the opportunity to strengthen again with the nearest target at IDR 226-250 first," he said.

According to BNI Sekuritas Analyst Andri Zakaria, market players are currently taking advantage of the low LAND price after reaching the highest point of IDR1,871 per share in July 2019.

"In the short term, there has been overbuying and the divergence indicates that the upside opportunities are relatively limited. Buying interest can be surpassed by selling interest in the near future," he explained to the media, Monday, May 23.

He assesses that the nearest target is at IDR 214 per share, but can penetrate IDR 240 to IDR 316 as long as it is above the demand area of IDR 142 to IDR 160.