PWON - 9M22 Net profit jumped 65%yoy

PWON - 9M22 Net profit jumped 65%yoyPT Pakuwon Jati (PWON) 3Q22 net profit grew 14.4%qoq and surged 70.2%yoy, with strong cumulative basis growth at 65%yoy and beats KBVS and consensus expectation (75%/70.4%). Recurring revenue of IDR2.78tn (66%yoy), capturing strong post pandemic recovery and proven improving malls traffic as mobility restriction have turned to zero. On retail mall & hotel, of the total portfolio around 92% of malls occupied and hotel Revpar rose 111%yoy. (Source : Company) Comment: We expect 4Q22 net profit growth could sustain underpinned by solid recurring income. As normalize malls foot traffic post Covid-19 is likely to sustain, we view PWON’s retail mall & hotel portfolio resilient income could continue and become as the main driver to maintain its margin, in our view.