XA Update Report | Pakuwon Jati Tbk. (PWON) – Recurring Income Buoys Performance

 

 

By Axell Ebenhaezer

31-August-2026

 

 

Pakuwon Jati (PWON) reported flat revenue of IDR 3.37 trillion in 1H26 (+0.0% YoY), as recurring income rose 7.4% YoY to IDR 2.89 trillion while development revenue fell 29.3% YoY to IDR 480 billion. Gross margin improved to 56.9%, and EBITDA grew 3.1% YoY to IDR 1.65 trillion. Net profit declined 11.4% YoY to IDR 1.01 trillion and net profit margin narrowed to 29.8% from 33.7% in 1H25, as mark-to-market losses on the Company’s managed fund portfolio reversed the gain booked a year earlier

 

 

🔹Retail leasing offsets declines in other segments

 

• 1H26 revenue from retail leasing increased by 6.8% YoY to IDR 2.06 trillion despite occupied retail area growing only by 1% YoY to 828k sqm. With minimal incremental space absorbed, growth was driven by rates rather than volume. That’s a higher-quality source of growth than lease-up as it consumes no capital.

 

 

• We expect the reversion cycle to run further. Only 7% of retail NLA expires in 2026, with 18% in 2027 and 16% in 2028, spreading rather than concentrating the repricing opportunity, and the leases now rolling over were struck in a materially weaker rental market. With Kota Kasablanka at 100% and Tunjungan Plaza at 97%, PWON negotiates from a position where it can trade occupancy for rate. We forecast space rental growth of 6.0% in FY27F and 5.5% in FY28F.

 

 

• A secondary driver would be the hospitality segment, with revenue rising 14.7% YoY in 1H26 as three FY25 openings start contributing.

 

 

• 5-star hotel RevPAR jumped 5.3% YoY and 4-star hotel RevPAR increased by 3.4% YoY, showing robust demand for luxury and upper-middle hospitality offerings despite economic headwinds.

 

 

🔹Marketing sales in-line with industry trend

 

• PWON’s residential pre-sales slipped by 6.3% YoY to IDR 565 billion, with high-rise units making up 67% of this figure. 42% of total marketing sales are derived from premium units with prices above IDR 5 billion, dominated by the Eluna Tower launch in Kota Kasablanka Phase 4, as high-value product demand remains stable.

 

 

• Despite extension of the VAT subsidy program, property demand from middle class & budget conscious segments remains sluggish throughout the industry as low consumer confidence still lingers.

 

 

• We see PWON’s marketing sales trend as not being a company-specific issue, and we view its growing recurring income segment as an offsetting factor & a catalyst for the company’s short-medium term prospects

 

 

 

🔹BUY recommendation with a TP of IDR 400

 

 

• We maintain our BUY rating for PWON with an adjusted TP of IDR 400, implying FY26F PE of 8.5x and PBV of 0.68x. Price is currently trading at a TTM PE of 5.8x.

 

 

• Risks: 1) Prolonged residential softness 2) Regulatory risks 3) USD/IDR exchange rate

 

 

 

Download full report HERE.

 

 

 

 

NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id