PWON - Recurring Income Anchors FY26F Stability

KBVS Update
Friday, 24 April 2026

PWON - Recurring Income Anchors FY26F Stability
(Maintain BUY - TP: IDR400)

FY25: resilient earnings, recurring income leads. FY25 revenue rose 6.6% YoY to IDR7.1 tn, driven by strong 4Q rebound and recurring income growth (+8.2% YoY), while development remained flat. Despite cost pressures, margins held, with net profit up 13.1% YoY to IDR2.3 tn, supported by lower interest costs.

FY26F: recurring income underpins stability. Recurring income remains resilient, with revenue growth supported by improving mall occupancy (Pakuwon City Mall, Pakuwon Mall Bekasi) and stable flagship assets. We forecast retail, office & apartment +3.2% YoY and mall +2.0% YoY, partly offset by softer Gandaria City performance.

Development revenue: normalization post strong cycle. Development revenue to decline -18.3% YoY to IDR864.0 bn as handovers normalize. Weak short-term customer advances -29.1% YoY point to limited near-term visibility, reinforcing the shift toward recurring income.

Margins: stable, with cost headwinds contained. FY26F revenue +4.4% YoY to IDR7.4 tn, supported by ~78% recurring income. EBITDA +5.7% YoY, but higher capex lifts interest costs (+12.5% YoY), limiting FY26F net profit growth to +3.8% YoY (32.8% margin).

BUY with an unchanged TP of IDR400, supported by high recurring income (~78%) and stable cash flows. Valuation remains undemanding (0.7x P/B; 65.9% RNAV discount).

Regards,
Steven Gunawan - KBVS Research