PWON - Solid Floor, Lower Ceiling

KBVS Update
Wednesday, 2 September 2026

PWON - Solid Floor, Lower Ceiling
(BUY - TP: IDR310)

Residential weakness weighs on development revenue. We cut FY26F development revenue to IDR1.2 tn (-22.0% YoY) as 1H26 delivery reached just 34.5% of our forecast, reflecting post-boom normalization.

Recurring income to become major contributor of earnings base. FY26F revenue is cut -3.1% to IDR6.9 tn (-2.9% YoY), but a higher recurring income mix supports EBITDA margin expansion to 53.1%.

Resilient occupancy offers downside protection, but growth stays muted. Recurring income should remain resilient, driven by healthy occupancy and positive rental reversion. We forecast recurring revenue +2.3% YoY to IDR4.4tn.

BUY, TP IDR310. We lower our TP to IDR310 from IDR340 on FY26F earnings cuts.

Regards,
Steven Gunawan - KBVS Research