PWON - Eyeing for IDR1.6tn pre-sales

Pakuwon Jati (PWON) targeting marketing sales at IDR1.6 tn this year. The company believes that interest rate does not affecting much to mortgage and closed to election year will become the most important. The targeted pre sales is expected to be contributed by high rise and landed house sales. (Source : Bisnis Indonesia). Comment: Despite play quite important role, we tend to share the same opinion with PWON. As long as economic activity in the od shape and inflation is manageable, demand for mortgage is likely to stable. Price tag of PWON product also caterized mostly for middle to up class which we believe more resilient compared to middle to low class segment. We also expect investment appetite for property, especially high rise which offering more yield than landed house will continue and this will underpin demand as well