Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/city-developments-ltd" target="_blank" data-smartkarma-citation="entities:57" rel="noopener">City Developments (CIT SP)</a> 1Q22 Business Updates – Home sales fell 41% due to wait and see approach by homebuyers</li><li><a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934" rel="noopener">ESR-REIT (EREIT SP)</a> to divest 3 Sanitarium Drive in AUS</li><li><a href="https://www.smartkarma.com/entities/ciputra-development-tbk-pt" target="_blank" data-smartkarma-citation="entities:5513" rel="noopener">Ciputra Development (CTRA IJ)</a> allocates IDR800bn in CapEx for land acquisition</li></ul>

City Developments (CIT SP) 1Q22 Business Updates – Home sales fell 41% due to wait and see approach by homebuyersESR-REIT (EREIT SP) to divest 3 Sanitarium Drive in AUSCiputra Development (CTRA IJ) allocates IDR800bn in CapEx for land acquisition

ASEAN Builder's Scoop (25May22) - CIT 1Q22 Home Sales Fell 41% YoY

External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Equity Bottom-Up

<ul><li>1H25 earnings were supported by recurring revenue growth of 10% yoy as Bekasi Mall contribution kicked in, offsetting weak condo revenue.</li><li>We adjusted our FY25F/26F Net Profit by -5%/-7%, reflecting lower landed houses pre-sales and potential IKN’s mall and hotel delay.</li><li>Maintain Buy with a TP of Rp640; Stable CF shall support capex needs until FY29, giving PWON higher bargaining position for rental repricing.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1H25 earnings were supported by recurring revenue growth of 10% yoy as Bekasi Mall contribution kicked in, offsetting weak condo revenue.We adjusted our FY25F/26F Net Profit by -5%/-7%, reflecting lower landed houses pre-sales and potential IKN’s mall and hotel delay.Maintain Buy with a TP of Rp640; Stable CF shall support capex needs until FY29, giving PWON higher bargaining position for rental repricing.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakuwon Jati (PWON.IJ) - Supported by Sustained Recurring Revenue Growth

<ul><li>1Q25 earnings was supported by recurring revenue growth of 10% yoy, which we expect to remain stabledriven by Bekasi/Pakuwon City Mall.</li><li>We adjusted our FY25F/26F Net Profit by -3%/+2%, reflecting higher non-core expenses and rental income from Bekasi/Pakuwon City Mall.</li><li>Maintain Buy with a TP of Rp640; Stable CF shall support capex needs until FY29, giving PWON higher bargaining position for rental repricing.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1Q25 earnings was supported by recurring revenue growth of 10% yoy, which we expect to remain stabledriven by Bekasi/Pakuwon City Mall.We adjusted our FY25F/26F Net Profit by -3%/+2%, reflecting higher non-core expenses and rental income from Bekasi/Pakuwon City Mall.Maintain Buy with a TP of Rp640; Stable CF shall support capex needs until FY29, giving PWON higher bargaining position for rental repricing.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakuwon Jati (PWON.IJ) - Recurring Revenue Growth Prospect Is Intact

<ul><li>We believe PWON’s malls assets are poised to reap benefits from the current sectoral trend and will cushion its weak condo marketing sales.</li><li>We expect a stable recurring revenue growth at an avg. of +10% p.a. in FY24F-FY29F with pre-sales of +7%, reflecting the weak condo market.</li><li>We resume coverage with a Buy rating and a higher TP of Rp640, as we include new projects but with a slightly higher disc. of 58% to RNAV.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe PWON’s malls assets are poised to reap benefits from the current sectoral trend and will cushion its weak condo marketing sales.We expect a stable recurring revenue growth at an avg. of +10% p.a. in FY24F-FY29F with pre-sales of +7%, reflecting the weak condo market.We resume coverage with a Buy rating and a higher TP of Rp640, as we include new projects but with a slightly higher disc. of 58% to RNAV.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakuwon Jati - Investment Property Remains an Underappreciated Growth Driver

<ul><li>PWON booked marketing sales of IDR442 billion in 3Q23 (+46% qoq, +20% yoy) driven by its high-rise residential sales.</li><li>We reaffirm our BUY rating on PWON on the back of: 1) marketing sales recovery in 3Q23, 2) its strong investment property portfolio, and 3) its cheap valuation.</li><li>We maintain our TP at IDR610 which is based on a 56% discount to its RNAV. Recovery in 3Q23 marketing sales. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

PWON booked marketing sales of IDR442 billion in 3Q23 (+46% qoq, +20% yoy) driven by its high-rise residential sales.We reaffirm our BUY rating on PWON on the back of: 1) marketing sales recovery in 3Q23, 2) its strong investment property portfolio, and 3) its cheap valuation.We maintain our TP at IDR610 which is based on a 56% discount to its RNAV. Recovery in 3Q23 marketing sales. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakuwon Jati (PWON IJ) - Attractive Valuation Amid Marketing Sales Recovery

Indonesia

Pakuwon Jati Tbk is a real estate developer in Indonesia, specializing in the development, marketing, and operations of properties. The company's diverse portfolio includes shopping malls, retail centers, office buildings, hotels, residential properties (both high-rise and landed), and serviced apartments. Pakuwon Jati was founded in 1982 and is headquartered in Surabaya, Indonesia.

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Pakuwon Jati (PWON IJ)

ASEAN Builder's Scoop (25May22) - CIT 1Q22 Home Sales Fell 41% YoY

EREIT sold 3 Sanitarium Drive; CTRA allocates IDR800bn for land acquisition; PWON saw +56.6% YoY in 1Q22 net profit; Phils's office occupancy...

SCCM Asia Research