PWON - Full-year targets maintained

KBVS Update
Tuesday, 28 October 2025

PWON - Full-year targets maintained
(Reiterate BUY - TP: IDR480)

Delivers solid 9M25 with strong recurring-revenue growth. PWON posted 3Q25 revenue of IDR1.7 tn (-4.1% qoq) due to weaker residential recognition, bringing 9M25 revenue to IDR5.1 tn (+6.9% yoy). Recurring revenue rose 7.7% yoy, driven by stronger shopping center, office and serviced apartment segments, while hospitality softened.

Maintains ‘25F outlook on strong recurring-income. We maintain our ‘25F forecasts, with results tracking inline. Recurring income is set to rise, supported by an 8.8% ytd increase in unearned income. Revenue from shopping centers, offices and serviced apartments is projected to grow 5.4% yoy to IDR4.1 tn, led by higher mall occupancy and the opening of Pakuwon Mall Bekasi. Property sales are expected to fall 10.3% to IDR676.9 bn after strong 2021-2024 performance. Overall revenue should grow 2.9% to IDR6.9 tn, with 79% recurring income. EBITDA is on track to IDR3.6 tn, and net profit is forecast to rise 10.1% to IDR2.3 tn, maintaining solid margins.

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 0.9x ‘25F P/B and 59.1% discount to ‘25F RNAV.

Regards,
Steven Gunawan - KBVS Research