Pakuwon Jati Tbk (PWON) Q3 2024 earnings summary

Executive summary

• Achieved 9M2024 revenue of Rp 4.8tn (US$316.2m), with double-digit growth in recurring revenue and a resilient EBITDA margin of 55%.

• Net income margin reached 39.3%, with 82% of EBITDA from recurring sources.

• Total assets grew to Rp 34.51 trillion as of September 30, 2024, from Rp 32.71 trillion at year-end 2023.

• Maintained a strong cash position with cash and cash equivalents of Rp 8.77 trillion.

• Signed agreements with Marriott International and The Ascott Limited for new hotel developments; inaugurated Pakuwon City Mall 3 in October 2024.

Financial highlights

• Revenue grew 5% year-over-year to Rp 4,786bn; recurring revenue up 11% to Rp 3,805bn, while development revenue declined 15%.

• Gross profit increased 8% to Rp 2,716bn, with gross margin at 56.8%.

• EBITDA rose 4% to Rp 2,615bn; net income for the period up 14% to Rp 1,881bn.

• Earnings per share increased 11% to Rp 32.91.

• Net income for the period was Rp 1.96 trillion, up from Rp 1.71 trillion in 2023.

Outlook and guidance

• Focus on expanding recurring income streams and leveraging superblock developments for long-term growth.

• Ongoing development of Pakuwon City Mall phase 3 and Pakuwon Mall Bekasi, expected to complete in 2024.

• Disciplined land banking and opportunistic acquisitions to sustain growth and high margins.

• The company continues to pursue expansion in hospitality and mixed-use developments, including new hotel projects in Batam and Nusantara.