The launch of the first two clusters of the Bandung project added about IDR 650 billion (approx. USD $47 million) in marketing sales (with a gross margin of 40-50 percent) for Summarecon Agung. Before the end of the year the company is also expected to launch the sale of two more clusters: the Condovillas (low-rise apartments) in both Summarecon Bekasi and Summarecon Serpong. Combined, these three projects are estimated to generate IDR 1.47 trillion (USD $107 million) in marketing sales. When added to marketing sales that were made earlier this year, then total sales rise to IDR 4.5 trillion (provided that all units will be sold).

The planned high-speed railway between Jakarta and Bandung has a very positive effect on the Summarecon Bandung project as the price of land in Bandung immediately rose after the Indonesian government confirmed that the train project will go-ahead. Initially, Summarecon Agung estimated that it could sell property in the Bandung project based on a price of IDR 6 million (USD $438) per square meter. However, after it was confirmed that Indonesia's first ever high-speed train will run between Jakarta and Bandung, the price rose to IDR 6.5 million per square meter.

In order to collect funds for further development of Summarecon Bandung (as well as other projects), Summarecon Agung may choose to conduct an initial public offering (IPO) on the Indonesia Stock Exchange for its subsidiary Summarecon Investment Property before the end of 2015 or in early 2016.

Summarecon Agung's Financial Highlights:

     2013    2014   2015F   2016F   2017F
Net Revenues   4,094   5,334   5,903   6,421   7,022
Net Income   1,096   1,398   1,390   1,424   1,527
P/E Ratio (x)    18.8    14.4    14.9    14.6    13.6
P/B (x)    4.69    3.77    3.14    2.68    2.31

in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Summarecon Agung, Annual Report 2014 & RHB OSK Securities

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