VAST’s Work in the Indonesian Warehousing Industry

VAST is here as the main solution for warehousing needs in Indonesia, serving various industrial sectors such as FMCG, logistics, e-commerce, and pharmaceuticals. With more than 12 years of experience, the company has managed to build a reputation as a high-quality warehouse provider with flexibility to suit customer needs. As of November 2024, VAST’s occupancy rate reached 98%, reflecting the high demand for their services.

Strategic Warehouse Network Throughout Indonesia

One of VAST’s main assets is the Tembesu warehouse complex in Lampung, which spans an area of 14.4 hectares. Of this total area, 7 hectares are VAST’s land, with 4 hectares already developed into warehouses rented by large tenants such as Indomarco, HM Sampoerna, Danone, and Coca-Cola. With a long-term contract and a reserve of 5,049m² of land for expansion, the complex becomes an important logistics hub.

Not only in Lampung, VAST also operates warehouses in Tangerang, Palembang, Bengkulu, Jambi, Pekanbaru, and Klaten, with a total land area of 5.8 hectares. These locations support the distribution of various products throughout Indonesia, making VAST a dominant player in this sector.

Brilliant Financial Performance: Revenue and Profits Continue to Increase

VAST continues to record solid performance growth. In Q3 2024, the company posted revenue of IDR 10 billion, an increase of +5.5% QoQ and +50.3% YoY. The main revenue came from warehouse rentals (92.3%), reflecting a stable core business.

VAST’s gross margin remained high above 80%, while the EBITDA margin reached more than 30%. With an occupancy rate of 99.6% for general warehouses and 98.5% for built-to-suit warehouses, the company was able to maintain strong profitability. Net profit also jumped to Rp6 billion (+18.3% QoQ, +60.4% YoY), bringing net profit throughout 9M24 to Rp14 billion (+41.9% YoY).

Solid Financial Ratios with Low Leverage

In terms of profitability, VAST has an average return on equity (ROE) of 32.8% and a return on assets (ROA) of 23.7% in the 2021-2023 period. In addition, the net debt-to-equity ratio is only 0.1x, indicating healthy financial conditions with minimal leverage. With a solid financial structure, VAST has the flexibility to continue expanding without excessive debt burden.

VAST Stock Potential: Cheap Stocks with Bright Prospects

In terms of valuation, VAST shares are still undervalued compared to the industry average. Currently, VAST shares trade at a P/E of 3.0x and a PBV of 0.8x, well below the industry averages of 8.1x P/E and a PBV of 0.9x. With strong fundamentals, high growth prospects, and an aggressive expansion strategy, the stock offers attractive price upside potential.

Expansion and Future Strategy

To continue growing, VAST plans to expand its land portfolio, including with the acquisition of family land and expansion into eastern Indonesia. With a strong client base, long-term contracts, and high occupancy rates, VAST is on track to maintain its growth momentum.

Conclusion

For investors looking for stocks with low valuations but high growth, VAST can be an attractive option. With an almost full occupancy rate, high profitability, and low leverage, the stock has solid fundamentals. Despite risks such as rising land prices and lower-than-expected tenant demand, VAST’s strategic advantages still make it a worthy industrial property stock.

References: ((Vastland Indonesia))