Pakuwon Jati Tbk (PWON) Q2 2024 earnings summary

Executive summary

• Revenue for 1H2024 reached Rp 3.3tn (US$198.6m), up 13% year-over-year, with EBITDA of Rp 1.8tn (US$108.9m) and a strong EBITDA margin of 55%.

• Net income margin stood at 41%, with 75% of revenue from recurring sources, highlighting portfolio stability.

• Major project milestones included groundbreaking and topping off of new towers in Surabaya and Bekasi.

• Credit ratings were upgraded by Moody’s and Fitch, reflecting improved financial strength.

• Total assets increased to Rp 34.24 trillion as of June 30, 2024, from Rp 32.71 trillion at year-end 2023.

Financial highlights

• Revenue grew 13% year-over-year to Rp 3,261bn in 1H2024; recurring revenue rose 11% and development revenue 18%.

• Gross profit increased 14% to Rp 1,847bn, with gross margin at 56.6%.

• EBITDA rose 10% to Rp 1,789bn, with a margin of 54.9%.

• Net income for the period was Rp 1,346bn, up 31% year-over-year, with net income margin at 41.3%.

• Basic EPS increased 29% to 23.76 Rupiah.

Outlook and guidance

• Continued focus on expanding recurring income streams and leveraging superblock developments for growth.

• Ongoing organic asset growth with significant retail, hotel, and office expansions planned through 2031.

• Sufficient land bank for over 10 years of development, supporting long-term growth.

• Management expects continued growth in recurring income from malls, hotels, and offices, supported by new project completions and stable occupancy.

• Focus on ongoing real estate development projects in Surabaya, Jakarta, and Bekasi, with significant advances from customers and unrecognized revenue.