Management of Strategic and Operational Challenges: an Empirical Analysis of Business and Financial Performance in the Real Estate Industry in 2020-2022 (PT. Pakuwon Jati TBk & PT. Ciputra Development Tbk)

Abstract

This study aimed to analyze the effectiveness of management strategies in addressing the strategic and operational challenges using the analysis of business and financial performance as measurement tools over three years from 2020 to 2022. This research examined the business and financial performance of the Property and Real Estate Industry in Indonesia, particularly PT Pakuwon Jati Tbk and PT Ciputra Development Tbk. The data used in this study is secondary data obtained from various sources, including the annual reports from IDX and the company’s official website. Historical financial analysis showed that PT Pakuwon Jati Tbk's liquidity, average solvability, and average efficiency showed a good improvement thus increasing the profitability and market analysis. Using this robust financial performance, supported by strategic initiatives, synergy-driven recovery, and digitalization efforts, the researcher prospected the financial performance of PT Pakuwon Jati Tbk namely improved revenue growth, profitability, liquidity, and solvency, while stable efficiency analysis with a slight upward trajectory. Meanwhile, even though PT Ciputra Development Tbk had improved the liquidity, solvability, average efficiency, and Net Profit Margin, the market analysis showed a fluctuating trend. Using this historical data, supported by sustainability, efficient resource management, and embrace of digitalization, the researcher prospected for the financial performance of PT Ciputra Development Tbk namely continued revenue growth and profitability, liquidity, and solvency and slight improvement in efficiency. The DCF valuation for PT Pakuwon Jati Tbk indicated a positive market upside potential, suggesting undervaluation. Conversely, PT Ciputra Development Tbk's DCF valuation suggested a slightly negative market upside potential, possibly indicating overvaluation.