PWON - Balance is Key
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24 May 2018

Result Highlights

 2Q17 bottom line (IDR 552.6 bn) inline with our 2Q17 estimate (IDR 551.93 bn).

 Revenue rose 14.1% (QoQ) and EBIT jumped 14.8% (QoQ) as Opex went down by 1.38% (QoQ).

 Marketing sales increased by 5.5% (YoY), backed with strong condominium sales in Surabaya which contributed 77.58% of total sales.

Robust condominium sales paved way to all time high quarterly result

PWON delivered strong earnings result for 2Q17, as the company’s revenue, gross profit, operating profit and net profit rose 31.6%, 43.3%, 52.5%, and 50.4% YoY, respectively (Figure 1). We believe this robust bottom line result is attributable to its condominium sales. Revenue from condominium and office sales recorded at IDR 733.6 bn (+89.5% YoY vs. IDR 387.1 bn in 2Q16). There were more than a few condominiums that PWON successfully sold in 2Q17 which included Benson, Anderson, La Riz tower at Pakuwon Mall, Angelo, Bella, Chianti tower at Kota Kasablanka and Amor tower at Pakuwon City. In addition, PWON managed to break its all time high quarterly result for revenue, operating profit and net profit which supported our positive view on PWON. Last but not least, the company’s 1H17 top and bottom lines met 52.4% and 44.4% of our full-year estimates, respectively.


INDONESIA
PT Phillip Securities Indonesia
ANZ Tower Level 23B, JlJendSudirman
Kav. 33A Jakarta 10220 – Indonesia
Tel +62-21 5790 0800 Fax +62-21 5790 0809
Website: www.phillip.co.id