PWON - Estimating recurring income to grow 30% yoy

Pakuwon Jati (PWON) believe recurring income will grow positif. PWON’s management expect recurring to contributes 65% to this year top line and grew around 30% yoy. The company has invested IDR2.1 tn to develop Pakuwon Mall Bekasi project, which currently has reached around 15% of the construction progress. (Source: Kontan). Comment : As movement restrictions has far left behind us, improving traffic and even surpassing prior Covid-19 level could strongly help PWON’s recurring revenue. Our latest market checked also proven malls activity has been running well (100% of tenant operated) and even accelerated as we see several new outlets opening.