Sinarmas Land Limited: Financial Analysis and Investment Recommendation

Net Profit Growth/Decline: 20.9% increase in profit for the year/period
Business Description
Sinarmas Land Limited is a Singapore-incorporated investment holding company primarily involved in the property business through its investments in Indonesia, China, Malaysia, Singapore, and the United Kingdom. The company’s core business operations include investment and development of commercial, industrial, and residential properties, as well as ownership and management of hotels and resorts.
Industry Position and Competitors
The company operates in the property industry, with a focus on Indonesia, China, Malaysia, Singapore, and the United Kingdom. Its competitors include other property developers and investment companies in the region.
Revenue Streams and Customer Base
Sinarmas Land Limited generates revenue from:
Sale of development properties
Rental and related income
Hotel and golf operations
Building management fees
Service concession arrangements
Toll road operations
Financial Performance
Income Statement
Revenue: $1,487.8 million (10.9% increase from FY2023)
Gross profit: $944.9 million (10.6% increase from FY2023)
Operating profit: $555.2 million (5.9% increase from FY2023)
Net profit: $465.3 million (20.9% increase from FY2023)
Balance Sheet
Total assets: $8,660.7 million
Total liabilities: $3,115.2 million
Equity: $5,545.5 million
Cash Flow Statement
Net cash generated from operating activities: $190.7 million
Net cash used in investing activities: $300.6 million
Net cash generated from financing activities: $187.8 million
Key Findings and Risks
The company’s revenue and profit have increased significantly in FY2024.
The gross profit margin remains stable at 63.5% in FY2024.
The company has a significant increase in selling expenses, mainly due to higher promotion, marketing commission, and salaries and related expenses.
The company has a net foreign exchange gain of $16.0 million in FY2024.
The company has a significant increase in interest income earned from time deposits.
Important Information for Investor Action
Dividend: No dividend has been declared or recommended by the Board of Directors for the current financial year.
Earnings increase: 20.9% increase in profit for the year/period.
Special activity: The company has acquired new subsidiaries, PT Suryamas Dutamakmur Tbk and PT Wira Perkasa Agung, which contributed to its revenue and profit.
Recommendation
Based on the financial analysis, we recommend that investors:
Hold their current positions in Sinarmas Land Limited, as the company has shown significant growth in revenue and profit.
Buy the stock if they are not currently holding it, as the company’s financial performance has improved significantly in FY2024.
However, investors should be cautious about the potential risks and challenges facing the company, including:
The global economic outlook has weakened significantly due to trade frictions and geopolitical tensions.
The company’s growth prospects may be constrained in the near term.
Disclaimer: This recommendation is based solely on the information provided in the financial report and should not be considered as investment advice. Investors should conduct their own research and consider their own risk tolerance before making any investment decisions.
Date of Report
The financial report is for the year ended December 31, 2024.

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