Menu
Solid aggregate 2Q25 recurring growth of 5.0% YoY on office rentals. In 2Q25, MKPI’s recurring income saw positive growth of 5.0% YoY to IDR 489bn, driven primarily by office rental revenues which expanded +9.8% YoY, supported by sustained demand for office space in prime locations. On shopping malls, rental revenue remained MKPI’s key contributor, up 4.7% YoY to IDR 319bn, though slightly down -1.3% QoQ. In terms of hotels, revenue was relatively flat on YoY basis at IDR 63bn (+1.1% YoY), but rose significantly 17.5% QoQ, thanks to 1Q25 low base-effect from Ramadan and Eid season. Water park segment posted 2Q25 positive GPM of 38.9%, a complete turnaround from previous quarter’s -29.1%, bringing the segment’s 6M25 GPM to 17.6%. Meanwhile, land and building sales fell sharply -71.3% YoY and -62.0% QoQ, contributing just 3.9% to total 2Q25 revenue (1Q25: 9.8%) on soft new project launches.
1H25 net profit down -13.5% YoY, relatively in-line with our estimate. In 2Q25, MKPI reported revenue of IDR 602bn, down -4.1% YoY and -5.1% QoQ. The YoY decline was primarily driven by -71.3% sharp drop in land and building sales. However, resilient growth in recurring income—particularly from rentals and land lease revenues (+5.0% YoY)—helped cushion the topline contraction. Also, it is worth noting that land and building sales accounted for only 3.9% of total 2Q25 revenue, substantially lower than the contributions from shopping mall rentals (52.9%), office rentals (11.6%), and hotels (10.2%). On the bottom line, MKPI posted 2Q25 net profit of IDR 231bn, down -13.5% YoY. Meanwhile, 6M25 revenues grew +3.1% YoY to IDR 1.2tn, gross profit rose +5.0% to IDR 655bn, operating profit increased +4.2% to IDR 564bn, and net profit rose +1.5% YoY to IDR 480bn—representing 41.9% of our FY25 forecast (vs. 3Y average: 43.5%), relatively in-line with our estimate.
BUY with TP of IDR 32,000 (+39% upside) on 50% discount to RNAV. We reiterate our BUY rating on MKPI with IDR 32,000 TP, based on reduced RNAV discount from 65% to 50%, reflecting MKPI’s minimal exposure to interest rate risk, supported by net cash position, relatively low contribution from development revenue (6M25: 21.2%), and highest ROAA in the sector. Key downside risks to our call include slower-than-expected rental rate growth and lower occupancy levels.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
