$RDTX, saham tidak liquid tapi sehat dan berfundamental baik. Start as a textile company in 1980, IPO in 1990, in 2002 diversified to office space rental due to textile stiff competition. 2014 completely close textile business. At the time of the writing, the price of RDTX is 5300.

RDTX is currently have 3 office tower active, 1 finished in 2020

1. RDTX Tower, build 2002, land area 5,723m2, 30,000 m2 lease space, 29 floor, occupancy rate (OR) 86% total rev 100B,
2. Stanchart Tower build 2007, land area 9908m2, 63,000 m2 lease space, 29 floor ,OR 89% , total Rev 200B IDR,
3. PHE Tower build 2012, land area 4476m2, 31,000 lease space,22 floor 100% OR, total rev 100B),
4. Chitaland Tower/RDTX Place (Chitaland Perkasa) finished end 2020- (1T worth), land area 12,727m2, 40th floor, 98,000 m2 lease space. This will generate potential extra revenue for 2021. My estimate it will takes about 2 years to 85% Occupancy rate. No debt to build this tower, all from operating cash flow. Means next year RDTX does not need to spend money to build new tower, and will receive fresh cash from RDTX Place office space rental. Think about the increase of FCF that will happened in 2021.

RDTX also acquired some land as time goes by. RDTX have land in Benoa Bali 7.2 ha worth 290B BV 158B , land in BSD City Commercial Park (2.7 Ha), BV 405 B IDR, already paid 380B), Factory in Citeureup (RDTX) 12.4ha worth 12.4 B IDR, Land in Menteng Dalam Tebet – Casablanca (DGM) (1.4 ha), worth 461B, BV 390B).

All this capex, acquisition and development using Zero Debt, all from operating cash flow. A real cash cow. Currently with 3 tower revenue around 400 B, Net income 250 B. with 4 tower expected next year revenue 530 B, NI 325 B.

Potential extra Revenue by building 2 more tower that land already acquired (BSD and Casablanca) and a hotel in Benoa. With 2 more tower within 10 years (built 1 every 5 years) , expected Revenue 850B IDR, Net income 500B IDR. There also a potential additional revenue if Citeureup factory become warehouse compound for rent.

Average current FCF = 250B IDR = 925/share increase to 500 B in 10 years = 1800/share. I believe that RDTX worth between 7700-15,000.

GPM 70%, OPM 63%, NPM 58%. High profit margin, capital intensive business. This is almost the same business model as toll road or Tower company. High investment at the start, then only small maintenance expense which give a huge Net profit margin.

ROA 8.3%, ROE 9.3%,

Revenue split : Rental 53%, Service charge 40%, parking 4%, overtime 2.5%.

Threat

1. trend of WFH, office means no office needed, or reduced size of office needed. Some company still need an office in prestigious area as branding. 2. Office space competition getting out of hand, rental rate going down.

3. Tenant have their own building (will happened with Pertamina and may be PHE), already happened with Danamon.

Customer : Pertamina EP 19%, Standard Chartered 10%, other client : Hitachi, GSK,, Takeda, Transcosmos Indonesia, Grab, JD ID, Starbucks, Reddoorz, GoWork, Ogilvy, Oriflame, Stanley Black&Decker, Medikaloka, KEB Hana, Cussons, dll

Dividen Payout Ratio 10%, most of the net income goes to build new tower.inventory and AP very small (insignificant).

Bonus : Sankey diagram of RDTX money flow