XA Update Report | Pakuwon Jati Tbk. (PWON) — Recurring Revenue Propels Growth

 

 

By Axell Ebenhaezer (Senior Analyst) & Kevin Pratama (Research Associate)

20-Apr-2026

 

 

Pakuwon Jati (PWON) reported a 7% YoY increase in revenue for FY25 to IDR 7.11 trillion with net profit margin improving to 35.4%. This performance was driven by strong growth in the retail leasing sub-segment which saw a 14% YoY rise in topline to IDR 3.93 trillion. As for the property development segment, we saw residential presales figures slipping by 16.3% YoY to IDR 1.30 trillion in FY25 as the company continues to navigate a challenging domestic real estate market.

 

 

🔹 Recurring income remains the bread and butter

 

• PWON recorded an 8% YoY increase in revenue from recurring operations for FY25, reaching IDR 5.62 trillion.

 

 

• The strong performance from retail leasing and a stable 2% YoY growth in the hotel & service apartment sub-segment more than counterbalanced the 26% YoY decline in office leasing revenue.

 

 

• FY25 retail leasing growth was driven by Pakuwon Mall Bekasi which saw its first full year of operations, as well as higher rental rates across multiple retail locations.

 

 

• We expect income from retail leasing to rise further in FY26 with a modest 5-6% growth as Park Shanghai records its first full operational year after its July 2025 inauguration.

 

 

• Similarly, we forecast revenue from the hotel sub-segment to see a strong improvement in FY26 after reaching IDR 1.42 billion last year. With the inauguration of three hotels in FY25 including Fairfield Bekasi, Aloft Surabaya, and Four Points Bekasi, we see contribution from this subsegment to rise by 7-8% YoY.

 

 

 

🔹 Residential demand remains sluggish

 

• PWON’s marketing revenue slumped in FY25 on the face of a tough domestic property market.

 

 

• Low consumer confidence severely hampers demand, while supply for residential real estate has ballooned in recent years. The ongoing government VAT incentive has helped in keeping demand relatively stable; however, we don’t expect a huge upswing in demand anytime soon unless structural economic catalysts occur.

 

 

• We forecast PWON’s marketing sales to have a mini-resurgence in FY26. The company’s strategy of targeting middle-class product segments remains a key factor in maintaining performance as middle class demand are usually more resilient in the face of economic downturns.

 

 

• Overall PWON growth in FY26 will be driven by the continued development of the Bekasi Superblock as well as the completion of Phase 3 of Pakuwon City Mall Surabaya,

 

 

 

🔹 BUY recommendation with a TP of IDR 500

 

• We give PWON a BUY rating with a TP of IDR 500. This implies a forward FY26 P/E ratio of 9.95x, slightly below its 3-Yr PE mean. The stock is currently trading at a P/E of 7.14x.

 

 

• Risks: 1) Weakening Rupiah 2) Real estate oversupply 3) Rising construction material costs

 

 

Download full report HERE.

 

 

 

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