Rancak Media – JAKARTA — Leading analysts are issuing a “Buy” recommendation for the property shares of PT Summarecon Agung Tbk. (SMRA), setting an ambitious target price of up to Rp800 per share. This optimistic outlook is underpinned by the company’s fundamentally solid operational performance, despite an apparent accounting anomaly observed in its third-quarter 2025 results.
Abida Massi Armand, an analyst at BRI Danareksa Sekuritas, highlighted that while SMRA’s net profit and revenue saw a decline in Q3 2025, its core operational fundamentals remained robust. This seeming contradiction, he explained, points to an accounting anomaly rather than a weakness in business execution.
Massi Armand attributed this discrepancy to two primary factors. Firstly, the implementation of PSAK 72 (Statement of Financial Accounting Standards 72, largely aligned with IFRS 15) defers revenue recognition from property sales until the units are officially handed over to buyers. Secondly, the company’s net profit was significantly impacted by surging non-operational financial expenses, which swelled to a substantial Rp878.5 billion.
Despite these transient challenges, SMRA’s prospects are projected to improve significantly through 2026. This positive trajectory is expected to be driven by a “catch-up” in profit recognition and the diligent conversion of a robust Rp3.8 trillion in unbilled revenue or backlog into recognized property income upon unit handover. This substantial backlog represents future revenue awaiting accounting recognition.
A powerful positive sentiment supporting SMRA’s outlook is the crucial extension of the Government-Borne Value Added Tax (PPN DTP) incentive for property purchases until 2027. This extended stimulus is anticipated to invigorate sales momentum and accelerate the property handover process, thereby fast-tracking revenue recognition. Conversely, a primary negative sentiment remains the risk of persistently high financial costs due to stubborn interest rates, which could continue to exert pressure on net profit even if revenue generation accelerates.
Abida further elaborated to Bisnis on Sunday (30/11/2025) that SMRA shares, currently trading at a price-to-book value (P/B) ratio of 0.55 times, are significantly undervalued and well below their intrinsic fair value. This valuation also reflects a substantial discount of 50% to 60% compared to its Revalued Net Asset Value (RNAV). “This suppressed valuation,” he concluded, “is a direct reflection of the third-quarter 2025 net profit being distorted by accounting factors and debt burdens, even as strong marketing sales performance clearly indicates robust underlying fundamentals.”
Based on this analysis, BRI Danareksa has reiterated its “Buy” recommendation for SMRA, setting a target price of Rp800 per share. Their core thesis posits that 2026 will mark a year of profit normalization for SMRA, bolstered by the conversion of its revenue backlog and the continued support from the PPN DTP incentive extension.
Meanwhile, Research Analyst Muhamad Rudy Setiawan from MNC Sekuritas noted that the broader property sector’s catalysts would be influenced by an anticipated stable supply of landed houses in 2026. This outlook is strongly shaped by the government’s decision to postpone the increase in VAT to 12% and, more importantly, to extend the 100% PPN DTP incentive for houses priced below Rp5 billion per unit until December 2027.
“Developers are expected to maintain their focus on the mid and lower-mid segments,” he stated in a research report released in early November 2025, “aligning with improving purchasing power and strong demand from first-time homebuyers.”
Consequently, MNC Sekuritas has maintained its “Overweight” recommendation for the property sector. SMRA, identified as a top pick within the sector, has been assigned a “Buy” recommendation with an estimated target price of Rp590 per share. Currently, SMRA shares are trading at Rp385, reflecting a year-to-date decline of 21.22%.
In a related development, Happy Hapsoro’s issuer, BUVA, has officially acquired SMRA assets in Uluwatu, Bali.
Summarecon Agung Tbk. – TradingView
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Summary
Leading analysts, including BRI Danareksa Sekuritas and MNC Sekuritas, have issued “Buy” recommendations for PT Summarecon Agung Tbk. (SMRA) shares, setting target prices of Rp800 and Rp590, respectively. This optimistic outlook stems from the company’s fundamentally solid operational performance, despite a decline in its Q3 2025 net profit and revenue. Analysts attribute this apparent contradiction to an accounting anomaly, specifically PSAK 72 deferring revenue recognition, and surging non-operational financial expenses.
SMRA’s prospects are projected to improve significantly through 2026 due to anticipated profit normalization and the diligent conversion of Rp3.8 trillion in unbilled revenue. The crucial extension of the Government-Borne Value Added Tax (PPN DTP) incentive until 2027 is expected to invigorate sales and accelerate revenue recognition. Despite the risk of persistently high interest rates, SMRA shares are considered significantly undervalued, trading well below their intrinsic fair value.
