Listed Company Analysis – PWON


HEIHO! Welcome back, today analysis will be looking deeper into PT Pakuwon Jati Tbk (PWON). PWON is a property sector company that has superblocks like Tunjangan Plaza, Surabaya; Pakuwon Mall, Surabaya; Kota Kasablanka, Jakarta; Gandaria City, Jakarta; Blok M Plaza, Jakarta; and many more. There are a lot of Apartments, Office Tower, Hotel, and even townships in their portfolio. Interested to know more about PWON? Take notes and check this out.

PWON of Series 54

Company Information

PT Pakuwon Jati Tbk (PWON) is a property management company. PWON develops and manages superblock, an integration of retail, office, condominium, and hotel in single large scale development. PWON owned by PT Pakuwon Arthaniaga with 68.68% shares or 33.077.598.400 shares to be precise. As the President of the Board of Commissioner is Alexander Tedja and the President Director of the company is A. Stefanus Ridwan Suhendra. Alexander Tedja is well known as the king of property and mall in Surabaya. He was listed as Forbes richest people in Indonesia at position 21st. Before going to the property sector, Alexander Tedja is an entrepreneur in the films and theater industry until 1991. Then starting build PWON since 1982 with Plaza Tunjungan I project as his first masterpiece. On the other hand, if we look at Stefanus Ridwan Suhendra, he is currently director too at PT Permata Berlian Realty since 2003. He is so well capable and very thorough at investment. This company IPO-ed on 09 October 1989 at price IDR 7.300/share with PT Danareksa (Persero) as the underwriter. The company has passed twice stocks split in 2006 and 2012, that’s why the price of today’s share is far so low compared to the first initial offering.

Key Financial Statistics

Pictures provided.

PWON Financial Statements of Series 54
PWON Financial Ratios of Series 54

Highlights of 2020

  • COVID-19 really lagging PWON operational, because the superblocks must be closed temporarily. 
  • The net income of Q1 2020 showing falling to IDR 66.76 Bio. Free fallin compared to Q1 2019 at IDR 720.96 bio, it shrank below 10% of last year.
  • PWON at the top of market cap on its sector, IDR 19.64 T which higher than other giants like Bumi Serpong Damai, Metropolitan Kentjana (Pondok Indah), Ciputra Development, and Lippo Karawaci.
  • Bank of Indonesia cut interest rates 25 bps to 4% (4 times this year). This could be the best opportunity for the first home buyer to have their first home with a low-interest rate.
  • Moody’s Investor Service report is out, projection on Indonesia’s revenue is not too good. On property as an example shown the projection is dropped 50% in 2020 and will recover gradually at 2021.
  • PWON credit rating at BA2 Stable. Considered good enough and still stable to operate despite the pandemic condition.
  • Re-opening is really a new fresh air for PWON but if there’s more PSBB that forces the Malls to stop operating, that might become the lowest point of the property sector in the last decade.

Target Price

Panin SekuritasBuy Rating490
Mandiri SekuritasBuy Rating670
NomuraBuy Rating570
Trimegah SecuritiesBuy Rating550
BNI SecuritiesHold Rating445
Maybank Kim EngBuy Rating600
J.P. MorganBuy Rating630
MacquarieBuy Rating500
RHB ResearchBuy Rating460
PT NH KorindoBuy Rating545
Sucorinvest CentralBuy Rating600
HopemityBuy Rating550
PWON Target Price of Series 54

Closing

Surabaya’s top business is PWON on the list. PWON not only tries to dominate Surabaya but slowly captures stakes at the Greater Jakarta Area position to become the majority in the city. It’s not impossible, with the current team and resources, this could happen in the next 5-10 years. Conclusions, PWON stocks are fit for long-term savings, why? Because the price of the property sector is considered at a low point, we can buy cheaper than it should be and will steadily growing. 2021 could be the highest point of the company, it might be double the value they are today.

Stay aware, because second falling might come early, somewhere in August oh don’t hurt us too badly. CIAO!

Remember, invest with the money that you can afford, don’t push yourself to invest with money you don’t have.

Hopemity

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