Last night, a friend told me about a dog accessory bazaar happening at
Pakuwon Trade Center Surabaya.
They really know how I can’t resist those adorable accessories for my pup at home!
It seems like lately, Pakuwon has been hosting a
lot of fun events.
Maybe it’s part of their strategy to boost their popularity while showcasing their ever-growing expansion.
Speaking of Pakuwon, they just released their 3Q24 financial report, showing a solid
net profit of IDR 816 bn, a massive
110% yoy and
58% qoq increase!
There are two main drivers behind this growth:
First, they saw a foreign exchange gain of about
IDR 375 bn, while last year, they actually recorded a forex loss of
IDR 157 bn.
The recent
strength in the Rupiah really boosted their numbers.
Second, their recurring income jumped too, now reaching
IDR 1.3 tn, up 12% yoy.
But here’s the kicker, if we exclude the forex gain, Pakuwon’s actual net profit for 3Q24 is
IDR 441 bn, down 19% yoy.
This dip is due to a significant drop in revenue recognition from their development business, with just
IDR 170 bn reported, marking a steep
63% yoy decline.
So, the impressive headline growth has some context underneath.
Still, Pakuwon’s total net profit for 9M24 stands at
IDR 1.7 tn, up 12% yoy.
This is on track with expectations, meeting
83% of their 2024 projection and
79% of analyst forecasts.
They’re aiming for a full year profit of
IDR 2 tn, although recent Rupiah weakening to
IDR 15,714 may lead to a forex loss of around
IDR 180 bn.
But there’s good news too!
In 4Q24, Pakuwon has scheduled unit handovers, including the
Amor and Bella towers in Bekasi, with a sales backlog of
IDR 600 bn,
74% of that from condominium sales.
These upcoming handovers should help offset potential forex losses and keep them on track for their annual profit target.
So far, Pakuwon’s 9M24 marketing sales are impressive at
IDR 1.1 tn, up 12% yoy, right on target.
They’ve already hit
78% of their 2024 goal and
75% of management’s forecast.
Looking ahead, our analysts are highly optimistic for Pakuwon’s 4Q24 sales.
Why? The government recently extended the
100% VAT incentive, previously only at
50%.
This perk is a huge boost for Pakuwon, especially for
condominium and landed residential projects.
With this incentive,
more buyers can jump in, driving sales growth as properties become even more affordable.
This way,
Pakuwon isn’t just relying on forex gains but pushing hard on direct sales from their core products.
If all goes as planned, Pakuwon’s year-end performance could be truly outstanding!
As a result, we’re recommending a
BUY for PWON, with a target price of
IDR 570.
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