PWON - Eyeing for continuing solid growth

PWON - Eyeing for continuing solid growth Pakuwon Jati (PWON) targeting marketing sales to reach IDR1.6 tn vs IDR1.5 tn in 2022, while recurring income to continue record robust growth this year at 30% yoy. To support this year growth, the developer will used capex around IDR2.4 tn, whereas it will allocated for land acquisition in Central Java, Bata, and Bali. (Source: Kontan). Comment: We believe the target is achievable backed by its high-rise solid demand which mostly came from middle to up class and our expectation on resilient sales of PWON’s landed house product. As appetite for property investment could remain, we think PWON will become one of the beneficiaries. The developer should also continue to enjoy better recurring income backed by movement restrictions which has become zero and normalized rental price tag coupled with healthier tenant’s cash flow.