PWON - Pre Sales to reached IDR1.8tn this year

PT Pakuwom Jati (PWON) beleived that marketing sales target at IDR1.8tn in 2022 is reacheable (9M22 IDR1.17tn). Aside from pre-sales PWON also view that recurring income will continue to be solid and become as the main revenue driver. The company has used around IDR780 of capex which mostly dedicated for construction used (Source: Bisnis Indonesia) Comment: We continue to like the stock as we view PWON could continue benefit from the continuing zero movement restrictions which resulting to a stable mall foot traffic. Amidst the increasing mortgage rate as a result of policy rate effect, we believe PWON will become as the least impacted as majority of its revenue will contributed from recurring income. We also view its solid property portfolio was mainly came from high end customers. Thus, demand potentially could be stable and at worst case scenario should only inched decreased due to high end price tag consumer profile seems less get impacted from the recent economic activity uncertainty. Last but not least, PWON could witness another solid retail mall NLA and occupancy rate combined with office leasing NLA improvement.