PWON - Mid-term growth ahead, driven by strong pipeline

KBVS Update
Tuesday, 29 July 2025

PWON - Mid-term growth ahead, driven by strong pipeline
(Reiterate BUY - TP: IDR480)

New openings & higher occupancy to drive retail & hotel segments. Stronger recognition of recurring income, reflected in a 22.8% rise in short-term unearned income, underpins our ‘25F projections of 7.2% growth in retail-leasing revenue..

Property sales dip, recurring income to drive stability. Revenue from apartment & office sales is expected to drop 10.3% after strong performance in ‘21–‘24, while landed house sales will slow to 1.2% growth. Despite this, total revenue is projected to rise 2.9%, driven by recurring income, which will make up 79% and support earnings stability.

Net profit seen rising 4.1% in ‘25F on lower interest costs. Despite higher margins from landed houses, their minimal contribution limits overall margin impact, leading to a projected 18bps decline in gross margin. With a strong cash position, the company is reducing debt, lowering interest expenses. As a result, net profit is expected to grow 4.1%.

Reiterate BUY with TP of IDR480. Maintain our BUY call with a target price of IDR480, using 5yrs DCF (WACC: 11.3%; LTG: 3%), implying 1.0x ‘25F P/B and 59.0% discount to ‘25F RNAV.

Regards,
Steven Gunawan - KBVS Research