Jakarta – Who doesn’t know Summarecon Agung? This property company, which is known for its magnificent projects, has just released financial reports that have surprised many investors. In the fourth quarter of 2024, $SMRA managed to score a net profit of 440 billion rupiah, which is an extraordinary increase of 289% year-on-year (YoY) and 144% quarter-on-quarter (QoQ).

Encouraging Numbers

With this impressive achievement, the company’s total net profit during 2024 reached around 1.4 trillion rupiah, jumping 79% YoY and exceeding market expectations. Arguably, this achievement is equivalent to 116% of the consensus estimate.

Margins shrink, but growth remains strong

However, even though the net profit is good, there is a little bad news. SMRA’s gross profit margin in the fourth quarter shrank to 47.8%, down 260 basis points (bps) YoY and 640 bps QoQ. Why is this so? Apparently, the very rapid revenue growth managed to provide a significant boost to the expansion of operating profit margin, which is now at the level of 30.8% (up 800 bps YoY and 130 bps QoQ).

A great income!

This encouraging revenue was driven by revenue recognition in the residential segment, which increased tremendously by 220% YoY and 125% QoQ. So, you could say, all eyes are on this sector to see the trend ahead. Through this report, SMRA also revealed that the research for the IPO of PT Summarecon Investment Property has changed its status to a closed company because it has not yet conducted an initial public offering.

With this good news, SMAR further strengthens its position in the Indonesian property world. Investors also seem more optimistic. How could it not? With all these developments, SMRA is certainly a major spotlight among real estate investors. Will we see more ambitious projects from them in the coming years? Only time will tell!