PWON’s revenue grew 8% YoY to IDR6.7 trillion in FY24. This achievement was driven by recurring income, which grew 11% YoY to IDR5.2 trillion in FY24, contributing to 78% of total revenue. We estimate PWON’s revenue can reach IDR7 trillion and net profit can reach IDR2.4 trillion (+15% YoY).

PWON’s diverse property business portfolio minimizes performance fluctuations due to high interest rates. Residential properties, shopping centers, hotels, and offices are PWON’s portfolio.

Pakuwon Residence Bekasi, Pakuwon Mall Surabaya, and new landbanks in Semarang have the potential to support PWON’s performance. After successfully selling 92% of units in Tower Amor (condominium) by the end of 2024, PWON has started marketing Tower Bella, one of three condominiums to be built in Pakuwon Residence Bekasi.

PWON’s marketing sales are targeted to reach IDR1.8 trillion +15.8% YoY in FY25. This target is in line with PWON’s achievements throughout FY24 and the progress of ongoing projects supported by ongoing VAT incentives borne by the government.

We maintain our buy rating for PWON, which has an estimated fair value of 535 (9.38x expected P/E FY26F and 70% discount to NAV) and a potential upside of 62.12%. The fair value is obtained using the Discounted Cash Flow and Revalued Net Asset Value methods.

By PHINTRACO SEKURITAS | Research
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