PWON - FY23 Earnings in-line with our and street’s forecast

PWON - FY23 Earnings in-line with our and street’s forecast In 4Q23, PWON achieved its highest quarterly profit of IDR618 bn in 2023 (+77.9% yoy, +59.2% qoq). This led to a net profit of IDR2,105 bn for FY23 (+36.8% yoy). In 4Q23, revenue grew by 9.3% yoy driven by 11.8% growth in office, shopping center, and service apartment and 25.7% growth in the hospitality segment, this resulted EBIT to grew 2.1% yoy. It further bolstered with a surge in interest income growth of 116.9% yoy to IDR145bn in 4Q23 due to strong cash position. Moreover, PWON recorded IDR39 bn of other income in 4Q23 (IDR106 bn of other losses in 4Q22). Comment : Performance in FY23 represented 104.2% of our estimate and 107.2% of the street estimate. In 2024, we expect a stronger performance of PWON driven by higher recognition from real estate segment spurred from the VAT exemption incentive as well as stronger recurring income.