Pantai Indah Kapuk Dua (PANI IJ)

Redefining the Skyline of North Tangerang

Backed by Agung Sedayu and Salim Group, PANI operates on several parts of the PIK 2 project. As a property developer, PANI looks compelling given: 1) its strategic location, 2) renowned controlling shareholders, and 3) potential for future development. Our estimate of PANI`s fair value is IDR18.5 trillion, which represents a 57% discount to its NAV of IDR 43.1 trillion.

Strategic location in the northern part of Tangerang. PANI (PT Pantai Indah Kapuk 2) operates on several parts of PIK 2 and the PIK 2 Extension development. Both sites are located in Tangerang Regency (Kosambi and Teluk Naga) which has close proximity to Soekarno-Hatta International Airport and the prominent PIK 1 and Golf Island projects. A toll road is currently being built to provide a connection to both sites and it is expected to be finished in 2024.

Renowned shareholders control PANI. Agung Sedayu Group (ASG) and Salim Group, renowned property developers and global business groups based in Asia, serve as sponsors and majority shareholders of PANI through PT Multi Artha Pratama (MAP), holding an ownership stake of 88.07%. Agung Sedayu has a track record as a prominent developer in the past 52 years while Salim Group, is recognized as a global business group based in Asia.

Huge potential for future development. PANI currently operates on only 743 ha of land bank (as of 31 March 2023) from a 6,000ha development area operated under Agung Sedayu and Salim. There are no disclosures in regard to future land injection to PANI. However, since PIK 2 is still in the early stage of development there is potential for PANI to be included in The future development.

Valuation. We value PANI using the commonly used discount to NAV. Based on our ratio and ASP assumptions for each company, we arrive at NAV of IDR 43.1 trillion.  We use a different discount to NAV on each of its operating arms. Our estimate of PANI`s fair value is IDR 18.5 trillion, which represents a 57% discount to its NAV of IDR 43.1 trillion. PANI’s latest market capitalization on 3 July 2023 stood at IDR 21.2 trillion, implying a 51% discount to our NAV calculation. As such, PANI is currently trading at a premium valuation implying rosy expectations for its future development, in our view.

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