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Feb 27,2017 11:37:36

Wijaya Karya ($WIKA), FY16’s results above our estimate

  • Wijaya Karya (WIKA IJ, BUY, TP: IDR2,950) recorded IDR1trn (+61.9% YoY) net profit in FY16, above our and consensus estimates due to one off revenue from land plot selling worth IDR250bn, higher GM and lower interest expense than expected.
  • On the other hand, its revenue only reached IDR15.7trn (+15.0% YoY), only 87%/88.4% of our/consensus estimates. It was dragged down by delay in HSR project which was expected to contribute IDR2.5trn last year.
  • Its gross margin was expanded to 14.2% in FY16, improved from 12.1% in FY15. It was supported by IDR250bn land plot selling in revenue and higher gross margin from infra Building segment.
  • In quarterly basis, Wika obtain IDR610bn (+323.8%QoQ,160.2% YoY) net profit in 4Q16, while its revenue grew +91.5%QoQ, 14.5%YoY. Thus, Wika booked the highest level of GM of 17.5%, higher than 11.7% in 3Q16.
  • Up to third week of Feb’17, Wika has raked IDR7.14trn new contracts, 16.5% to its new contracts target and improved +255%YoY compare to same period last year.
  • We maintain our BUY call on the stock as the company will start to recognize HSR contract as revenue this year, its robust growth and healthier balance sheet post rights issuance. (Dony Gunawan)
Dec 14,2016 08:11:21

Wijaya Karya Beton: Meeting Takeaways- Heading to an Even Better Year ($WTON)

Our discussion with Wijaya Karya Beton’s ($WTON) management revealed that 2016 new contracts would surpass initial expectation of Rp4.3tn. Meanwhile, entrance in ready-mix concrete business as well as infrastructure and energy projects should ensure 2017 sales to grow above 20%. Retain BUY call with TP of Rp1,000.

Positive news in the year end. WTON expects to book Rp6tn of new contracts in 2016, supported by the signing of Balikpapan-Samarinda (Balsam) toll road and Inner Jakarta LRT project with total contracts of around Rp1.6-1.7tn. This achievement is higher than the management’s already upgraded 2016FY new contracts target of Rp4.3tn (2015: Rp3.5tn). Gazing into 2017, WTON targets new contracts of Rp6tn (Mansek estimate: Rp5tn), which is backed by infrastructure (e.g. toll road and railroad) and energy (e.g. power plant) projects. In preparation for such projects, WTON is currently building a new plant in Subang (West Java) with total capacity of 300k tons per annum which specializes in girder products.

Another leap in 2017. Despite improving plant utilization rate to 82% in 9M16, WTON targets 2017F sales growth of more than 20% with expectation of better government projects realization. In addition, a forecast of Rp4tn of carry over contracts to 2017 should ensure more stable plant utilization rate and revenues recognition. In 2016, WTON experienced lower sales contribution from local private contractors (9M16: 38%; 2015: 57%) due to the ministerial budget cut.

Foray into new business. To increase synergy with its parent company, Wijaya Karya ($WIKA), WTON would start supplying ready-mix concrete (RMC). Going forward, the company expects RMC business to also provide a sales boost with target contribution of 10% of its total revenues. Meanwhile, on the back of strong demand for precast building, WTON plans to establish a new joint venture company with Wika Gedung. Through the new company, WTON could put more focus in growing precast building products as well as establish a new dedicated plant.

Reiterate BUY rating. With 34% EPS growth in 2017 and a well-established reputation in precast industry, we retain our BUY call with TP of Rp1,000, based on an unchanged 25x 2017F PER. Main risk is lower contracts from government and power plant projects.

Dec 14,2016 08:01:52

WIKA prepares IDR2.5tn for electricity business expansion in 2017

Wijaya Karya ($WIKA) prepares IDR2.5tn budget for 2017 electricity business expansion. WIKA plans for a 15% ownership of 2x1,000MW Java V Steam Power Plant, 15%-20% ownership of 2x50MW Manado Steam Power Plant, and targets other power plants in several locations. (

Dec 13,2016 16:55:27

Wijaya Karya Persero - Moving On Up

We maintain our BUY recommendation and adjust our earnings post rights issuance, which translates to a new TP of IDR2,950 (from IDR3,370, 24% upside) based on 22x FY17F P/E. Imminent signing of the HSR project and LRT Greater Jakarta is likely to boost Wika’s orderbook. Having said that, we increase our orderbook FY16F-17F estimates to IDR85trn and IDR103trn respectively. We also increase our FY17F NPAT growth to 68.4%, as the company plans to ramp up its investment in infrastructure projects in order to rake in a higher orderbook.

¨ Post rights issue. Wijaya Karya Persero (Wika) has successfully completed IDR6.1trn rights issuance including IDR4trn from the Government with a high subscription rate. Previously, it set the rights issue price at IDR2,180 and issued 2.82bn new shares. 30% would be allocated for working capital, while 70% is likely to be used for infrastructure investments, capital injection to subsidiaries and land bank enlargement. The company aims to increase its infrastructure investments to several sectors such as power plants, water pipe networks and toll roads. Hence, we estimate that the company ought to allocate IDR6trn capex to support its business. As a result, we see that its NDER would be around 0.3x next year. We see that the company ought to therefore still have a plenty of room to stretch its balance in order to capture higher growth.

¨ Orderbook. Kereta Cepat Indonesia China (KCIC) has reached an agreement to sign financial facilities with China Development Bank (CDB) by the end of this year. Hence, the IDR15.8trn High Speed Railway (HSR) project would likely be signed this month along with the IDR5trnLight Rail Transit (LRT) Inner City Jakarta project. This would boost Wika’s orderbook. Given those additional new projects, we upgrade our FY16F’s new contracts estimate to IDR50trn (Figure 5). We also see that potential new projects would be higher than our initial expectation next year due to its healthier balance sheet to support Wika’s infrastructure investments. Having said that, we increase our FY16F-17F total orderbook estimates to IDR85.5trn and 103.5trn respectively.

¨ Robust growth. We also see stronger growth after the rights issuance as orderbook would be bulking up. Furthermore, the company is targeting to recognise 20% of HSR contract value to revenue, while most of LRT Inner City Jakarta’s civil work ought to be completed next year to support Asian Games in August 2018 in Jakarta. Consequently, we expect Wika’s NPAT growth is likely to hit 68.4% YoY (Figure 5) and a stable gross margin at 11.8% in FY17F. Note that our lower EPS in FY16F-17F is due to the dilution from the rights issuance’s proceeds.

¨ BUY with TP of IDR2,950. After rights issuance, we maintain our BUY recommendation with a new TP of IDR2,950 based on unchanged P/E of 22x FY17F, its 3-year average historical forward P/E. The key downside risks to our call are a delay in the HSR project and slower-than-expected land acquisition. (Dony Gunawan)


Dec 08,2016 12:22:09

Indonesia Toll Road Authority (BPJT) to postpone 2 toll road sections’ tenders

Head of BPJT Tender Committee, Eka Pria Anas, stated that BPJT would postpone Probolinggo – Banyuwangi (170.4km; Rp18.4tn) and Semarang – Demak (24km; Rp2.96tn) sections tender to early 2017 as the location has yet been decided by the governor. Note that 3 toll road business entity (BUJT) passed the prequalification for Probolinggo – Banyuwangi section, namely Enka Insast Ve Sanayi (Turkey), Jasa Marga ($JSMR)’s consortium (with Waskita Toll Road and Brantas Abipraya), and Pembangunan Perumahan ($PTPP). While 2 BUJTs passed the prequalification for Semarang – Demak section, namely JSMR’s consortium (with Waskita Toll Road) and $PTPP’s consortium (with $WIKA). (Bisnis Indonesia)

Dec 02,2016 13:11:33

WIKA to cooperate with Pertamina on Balikpapan refinery project

Wijaya Karya ($WIKA) has signed a contract with Pertamina on Site Development and New Jetty Construction for Balikpapan RDMP RU V project. Bambang Pramujo, Operational Director II of WIKA, stated that the contract value of Jetty construction is totalling IDR552bn with 6,500 DWT (dead weight tonnes) of capacity. Moreover, WIKA is targeting mechanical completion to be finished on June 2019 with commissioning expected to start from September 2019. (

Nov 08,2016 19:09:22

Wijaya Karya sets right issue price at IDR2,180

Wijaya Karya ($WIKA) has set its right issue price at IDR2,180 per shares. The company will issue 2.82bn new shares with total proceeds target of IDR6.15trn. The current shareholders who do not exercise the right will be diluted by max 31.45%. The cum rights in the regular market is set at November 10, with recording date at November 16. Wika will open the trading period within November 17-November 23. Wijaya Karya will use 70.8% of the proceeds for its government priority projects’ capex in the form of special purpose vehicles.
Comment: We have a positive view on this right issuance as we see that Wika will have a healthier balance sheet and stronger earnings growth post right issue.

Nov 08,2016 19:07:45

Wijaya Karya Persero ($WIKA): Taking The Weight Off Its Shoulders

Last Friday, Wijaya Karya set its rights issue price at IDR2,180 per unit. We expect its outlook to improve post-exercise, as this would lift the overhang on the stock while strengthening its balance sheet and earnings growth. The progress of new jobs won is still in line with our estimate, as the HSR contract is likely to be signed by year-end. Maintain BUY, with an unchanged TP of IDR3,370 (31% upside). We anticipate an earnings upside once the rights issue finalised, as the company would have a sturdier balance sheet to take on more projects.
¨ Details of rights issue. Wijaya Karya Persero (Wijaya Karya) set the rights issue price at IDR2,180 vs the initial price range of IDR1,525-2,505. The company is likely to issue 2.82bn new shares, and expects to book total proceeds of IDR6.15trn. Current shareholders, who do not exercise their rights, would be diluted by a maximum of 31.45%. The cum rights in the regular market is set for 10 Nov, with a recording date of 16 Nov. Wijaya Karya would use 70.8% of the proceeds to finance its government priority projects. Having said that, we expect the exercise to eliminate the overhang on the stock. Moreover, it may have a healthier balance sheet post rights issue and stronger earnings growth in FY17F, as its capacity could improve.

¨ Earnings estimates. We expect earnings to grow 19.7% YoY and 25.9% YoY in FY16 and FY17 (pre-rights issue), supported by a strong orderbook for this year. We expect its orderbook to grow 63.9% YoY this year, while the High-Speed Railway (HSR) project is likely to commence in early 2017. We expect its gross margin to be around 11.4% next year as the construction margin of the HSR project may be lower than that of other infrastructure projects. Having said that, this project would bump up the value of its new contracts to c.IDR16.7trn.

¨ Orderbook. Up to now, Wijaya Karya has booked IDR25.4trn in new contracts this year, making up 56.4% of our full-year estimate. This is relatively in line with last year’s 56%, and reflects seasonality. Thus, we remain confident that the company’s new orders would reach our full-year estimate – since many projects are scheduled to be announced at year-end.

We also expect the company to book IDR32trn in new contracts next year, which would take its total orderbook for FY17 to IDR93.8trn (+16.6% YoY).

¨ BUY. We reiterate our BUY call. Our TP of IDR3,370 is based on 22x FY17F P/E, +1SD above the industry’s 3-year average historical P/E.

¨ Post rights issue valuation. Post rights issue, we expect Wijaya Karya’s improved balance sheet to allow the company to capture more projects going forward. We expect upside potential to its FY17 earnings should this happen. Based on an unchanged FY17F P/E target of 22x, our post rights TP would be adjusted and slightly lower than current TP.

Nov 08,2016 19:01:39

Four listed SOEs to soon complete rights issuance process

Rini Soemarno, the Minister of State Owned Enterprises, stated that all the Government Regulation (PP) has been approved which should pave way for rights issue of Wijaya Karya ($WIKA), Jasa Marga ($JSMR), Krakatau Steel ($KRAS) and Pembangunan Perumahan ($PTPP). For $WIKA, the rights trading date would occur on 17-23 November 2016 while $JSMR’s rights trading date would happen on 1-7 December 2016. On separate occasion, the SOE Ministry is also considering IPO of Brantas Abipraya, a state-owned construction company

Nov 08,2016 18:37:15

Wijaya Karya ($WIKA) set rights issue price at Rp2,180 per share

Through this corporate action, WIKA would release 2.82bn new shares (or equivalent to 31.4% of outstanding shares) which is expected to raise Rp6.15tn. Every shareholder who held 80,000 old shares by 15 November 2016 is entitled for 36,697 new shares.

Nov 08,2016 18:34:06

Indonesia Toll Road Authority (BPJT) announced participants for two toll road tenders

For the tender of 24km Semarang-Demak toll road (total investment costs: Rp3tn), two local consortiums, Jasa Marga ($JSMR) - Waskita Toll Road and Pembangunan Perumahan (4PTPP) – Wijaya Karya ($WIKA), have submitted pre-qualification documents. Meanwhile, for the 170km Probolinggo-Banyuwangi (total investment costs: Rp18.4tn), three consortiums which have submitted the bid which comprised of Enka Insast Ve Sanayi (a Turkish construction company), JSMR-Waskita Toll RoadBrantas Abipraya and PTPP.

Jul 27,2016 12:20:46
Talk of a Reshuffle today

Reshuffle Kabinet akan diumumkan pk.11.00 pagi ini dan Kabinet baru dilantik pk.14.00 sore ini juga.
1. Menteri Keuangan Bambang
    S Brojonegoro diganti Sri
     Mulyani Indrawati.
2. Menpan RB Yuddy
    Chrisnandi diganti Asman
    Abnur (partai PAN).
3. Kepala Bappenas Sofyan
    Djalil diganti Bambang
4. Menteri ATR-BPN Ferry
    Mursidan Baldan diganti
    Sofyan Djalil.
5. Mentri Perdagangan Tomas
    Lembong diganti
    Enggartiasto Lukito.
6. Menteri Perindustrian Saleh
    Husein diganti Erlangga
7. Menteri Perhubungan Jonan
    diganti Budi Karya.
8. Mentri Desa Marwan Jaffar
    diganti Eko Putro (PKB).
9. Mentri ESDM Sudirman Said
    diganti Chandra Tahar
10. Mendiknas Anis Baswedan
       diganti Prof Muhajir
11. Menkopolhukam Luhut
       Panjaitan diganti Wiranto.
12. Menko Maritim Rizal Ramli
       diganti Luhut Panjaitan.
13. Kepala BKPM Franky
      Sibarani diganti Tomas
14. Franky Sibarani akan
       menjabat Wkl. Mentri

Menteri perindustrian Erlangga Hartarto -> has a good relationship with $AKRA, which happens to have an industrial estate in East Java

Menteri perhubungan Budi Karya -> could be positive for $WIKA and $ADHI. We may see faster approvals for LRT jakarta (Adhi) and HSR (WIKA)

Menteri keuangan Sri Mulyani -> positive sentiment for index in general and banks in particular

Jul 22,2016 16:37:22
WIKA dalam RUPSLB mengumumkan pencapaian kontrak baru hingga Juni 2016 sebesar Rp1,931 triliun atau setara dengan 44,9% dari target kontrak baru 2016 sebesar Rp4,3 triliun. Tiga proyek baru yang telah diperoleh hingga Juni 2016 adalah proyek pembangunan jalan akses Gedebage, Bandung, Jawa Barat, pembangunan terminal tangki Nilam di Jawa Timur, dan proyek pekerjaan konstruksi paket A Manggarai-Jatinegara di Jakarta.
Jul 13,2016 11:44:26
Pemerintah menyetujui rencana penerbitan saham baru (rights issue) 4 perusahaan pelat merah, yakni JSMR, WIKA, PTPP, KRAS. target pendanaan dari rights issue keempat perseroan tersebut sebesar Rp 14,3 triliun. Penyertaan Modal Negara (PMN) sebesar Rp9 triliun untuk menyerap sebagian besar saham keempat BUMN tersebut. Sisanya sebesar Rp5,3 triliun diharapkan dari partisipasi publik.

Aksi korporasi ini merupakan bagian dari program privatisasi dan penguatan modal keempat Badan Usaha Milik Negara (BUMN)  Aloysius Kiik Ro, Deputi Bidang Restrukturisasi dan Pengembangan Usaha Kementerian BUMN mengungkapkan.

Jul 13,2016 11:43:19
WIKA menargetkan pembangunan fisik kereta cepat Jakarta-Bandung sepanjang 250 Kilometer (Km) akan rampung minimal 10% hingga akhir 2016. rencananya akhir bulan ini Wika akan mendapatkan kontrak baru senilai Rp15 triliun dari proyek kereta cepat tersebut. Hal itu untuk menindaklanjuti keluarnya izin pembangunan di trase jalur kereta cepat sepanjang 53 km yang baru dikeluarkan Kementerian Perhubungan (Kemenhub) bulan lalu.

Sebagai informasi, pada Maret lalu, izin pembangunan prasana kereta cepat yang dikeluarkan Kemenhub kepada KCIC baru sepanjang 5 km, yaitu pada segmen km 95 hingga 100.

Diharapkan, akhir Juli ini, KCIC bisa merampungkan proses perjanjian pinjaman dengan China Development Bank untuk menanggung 75 persen pembiayaan untuk proyek senilai US$5,5 miliar itu. Demikian dikatakan oleh Direktur Utama WIKA Bintang Perbowo, Selasa (12/7).

Jun 15,2016 09:49:44
WIKA : Menuju Pemulihan
Walaupun kami melihat proyek HSR  (Kereta cepat) WIKA tetap berisiko, kami memiliki pandangan yang lebih positif terhadap proyek tersebut. Kami juga melihat performa WIKA di tahun 2016 akan membaik yang didorong oleh nilai kontrak baru yang lebih tinggi diluar proyek HSR. Selain itu kedepannya WIKA juga direncanakan untuk menerima PMN dari pemerintah yang menurut kami sangat positif bagi WIKA. Oleh karena itu kami mempertahankan rekomendasi beli dengan target harga Rp3.050/saham yang mengimplikasikan P/E 2016F dan 2017F sebesar 24,83x dan 18,93x. Poin – poin penting dalam report kami adalah sebagai berikut:
·         Pemulihan dalam pencapaian kontrak baru

·         PMN sangat bermanfaat bagi WIKA

·         Outlook proyek HSR lebih positif

·         Pertahankan rekomendasi BELI, target harga Rp3.050/saham


Jun 07,2016 12:26:34

•PERTUMBUHAN EKONOMI : Pemerintah memberi sinyal penurunan asumsi laju produk domestik bruto dari usulan RAPBNP 2016 sebesar 5,3% menjadi 5,1%-5,2%. (BISNIS INDONESIA)

•REGULASI IMPOR PONSEL & KOMPUTER : Per 1 Juli, Importir Produsen Wajib Investasi
Mulai 1 Juli 2016, impor telepon seluler, komputer genggam (handheld), dan komputer tablet khususnya untuk perangkat yang berada dalam jaringan 4G LTE oleh importir produsen wajib menyertakan bukti investasi di dalam negeri. (BISNIS INDONESIA)

•INDUSTRI PAKAN TERNAK : Jagung Ditekan, Impor Gandum Melonjak, Pengetatan impor jagung berimbas pada meningkatnya impor gandum untuk pakan ternak. Penurunan impor jagung juga telah menyebabkan penyerapan komoditas itu dari petani lokal naik cukup signifikan. (BISNIS INDONESIA) Comment : good for BISI

•TAMBAHAN MODAL BUMN : PMN Cair, Rencana penerbitan saham baru oleh BUMN kembali mencuat setelah pemerintah mengusulkan Penyertaan Modal Negara (PMN) dalam Rancangan APBN Perubahan 2016 kepada DPR. (BISNIS INDONESIA)

•WTON : Perusahaan beton pracetak PT Wijaya Karya Beton Tbk. sudah mengantongi proyek infrastruktur HSR Jakarta-Bandung dan menggenggam total nilai kontrak baru hingga Rp1,3 triliun. (BISNIS INDONESIA)

•RI MASUK LIMA BESAR DUNIA - Ledakan Besar di Ritel : Lompatan peringkat Indonesia, dari 12 menjadi 5, dalam Global Retail Development Index (GRDI) 2016 kian mengonfirmasi terjadinya booming sektor ritel di Tanah Air. (BISNIS INDONESIA) Comment : Good For ACES, RANC

•STOK CPO MENURUN : Ramadan Kerek Harga CPO, Persediaan minyak kelapa sawit di Malaysia, sebagai produsen kedua terbesar di dunia, diprediksi menyusut ke level terendah dalam dua tahun terakhir. Harga pun berpeluang mencapai level 2.900 ringgit per ton pada bulan ini. (BISNIS INDONESIA) Good For LSIP, AALI

•TLKM : PT Telekomunikasi Indonesia Tbk mengaku sudah meraih pendapatan sekitar Rp 15 triliun dari segmen High End Market yang dikelola Enterprise Customer Facing Unit (CFU). (INDO TELKO)

•BBRI- BMRI : Bank BRI (Persero) Tbk dan Bank Mandiri (Persero) Tbk berkomitmen membiayai permodalan bagi distributor minyak pelumas buatan PT Pertamina Lubricants. (KOMPAS)

•BMRI : Bank Mandiri’s e-money solution provider PT Digital Artha Media (DAM) will sign partnership agreements with 13 e-commerce companies while Indonesian Agency for Creative Economy (BEKRAF) has joined hands with several venture capital firms to fund the 16 sub-sectors in the creative industry. (DEAL STREET ASIA)

•Harga Nickel Dan Timah
Tin 3M : 16945  +350  +2.11%
Nickel 3M : 8665  +165  +1.94%



Apr 29,2016 10:01:07
Wijaya Karya Beton ($WTON) 1Q16 earnings in-line

¨ Wika Beton (WTON)’s NPAT profit reached IDR50.2bn (-41.7%QoQ; +195.4% YoY), in-line with our/consensus estimates (20.7% and 17.5% of our and consensus FY16 estimates respectively).

¨ Its revenue was IDR732.5bn (-33.6%QoQ; +71.3%YoY), in-line with our estimates and accounted for 21% to our FY16 revenue expectation.

¨ Gross margin was up to 12.4% due to recovery in utilization rate of 80% - 85%, although it is still below our and consensus GM estimates of 13.0% and 13.7% in FY16

¨ Net margin was also improved from 4.0% in 3M15 to 6.9% in 3M16, in-line with our estimates but below consensus estimates of 7.8%.

¨ We expects that WTON would continue its decent results in following quarters since many infra projects usually start in 2H16. Currently, the company is trading at 34.4x FY16 PE. Given that expensive valuation, we maintain our Neutral call with TP of IDR870.
Apr 26,2016 09:00:30
Higher Infrastructure Spending: Where Does The Money Come From?
¨ The government’s energy subsidy reform has allowed it to increase its infrastructure spending since 2015 via saving from the subsidy.

¨ Indonesia’s state budget, however, will likely face downward pressure due to lower-than-expected oil price compared with the budget’s assumption of USD50/barrel. Taking into account our macro assumptions of the government continues its spending in 2016, coupled with the uncertainty of tax amnesty bill to be introduced in 1H16, we project the fiscal deficit to widen to 2.7% of GDP, from last year’s -2.5% of GDP.

¨ Nonetheless, to overcome the income shortfall, the government plans to cut its budget expenditure. This will likely affect the country’s economic growth somewhat, posing a downside risk to our real GDP growth forecast of 5.1% for 2016.

¨ In the short run, excise duties on selected products could be increased, including tobacco, fuel, and vehicles. Over the medium term, tax reform should aim at broadening the tax base and increasing the VAT rate, while tax administration should adopt a risk-based approach to reduce tax evasion.

Mar 22,2016 14:04:13
Wijaya Karya Beton ($WIKA), Chasing Pavements

Maintain NEUTRAL with a lower IDR2,665 TP (from IDR2,815, 6% upside) based on 22x FY16F P/E, +1SD above the industry’s 5-year mean. While the stock price has declined since January, we keep our view due to lower-than-expected FY16 earnings guidance, potential delays of the HST project and Wika being the most expensive state-owned contractor in the market with the slowest earnings growth and relatively low earnings visibility. It is currently trading at 20.8x FY16F P/E.

¨ Lower management guidance. Wijaya Karya (Wika) is aiming to record IDR750bn (+20% YoY) in net profit this year, lower than our previous IDR783bn (+25.9% YoY) estimate. Thus, we cut our NPAT forecast to IDR745bn (+19.1%). Wika is also targeting for IDR52trn in new contracts, more than double of last year’s IDR25.2trn realisation. This is due to the High-Speed Train (HST) project, which would contribute up to IDR17trn. However, our new contracts target remains conservative at IDR46.8trn.

¨ Uncertainty over the HST. HST consortium PT Kereta Cepat Indonesia China (KCIC) has currently not fulfilled three permits: i) concession, ii) building, and iii) business. Although the company believes all permits would be granted by April, we still see a potential further delay. Thus, we think all permits would likely be granted by end-2Q16 at the latest. As the biggest stakeholder from Indonesia, we believe the project could harm Wika’s cash flow, mainly due to high financial and operational risks during the operations period. Although in the short run it would benefit the company, as Wika is to do the civil works of the HST project, we see contributions being more feasible in FY17-19.

¨ NEUTRAL with a lower IDR2,665 TP. Post our FY16F NPAT adjustments, we maintain our NEUTRAL call with a lower IDR2,665 TP based on an unchanged 22x FY16F P/E, +1SD from the industry’s 5-year mean. This stock is the most expensive state-owned contractor in the market.
Mar 18,2016 20:23:03
Wijaya Karya ($WIKA) - One Down, Two To Go

KCIC signed a concession license agreement with the Transportation Ministry yesterday, and has to obtain construction and business permits for this project. While the consortium expects to get the construction permit in the next two weeks, we maintain our NEUTRAL call and IDR2,665 TP (5% upside) for Wika, as we still think that the contribution from the HST project would only be made in FY17 onwards, not FY16.
Mar 16,2016 12:21:47
Ada BUY signal (Target terdekat 2,800)

Mar 14,2016 13:02:30
Wijaya Karya to handle IDR1.45trn worth of Puncak Group’ projects

Puncak Group appointed Wika Gedung, subsidiary of Wijaya Karya ($WIKA) to handle IDR1.45trn worth of projects in Surabaya. The projects involve construction of 12 floors hotel, 3 floors shopping mall, 5 apartment towers with total 4,320 units, office building and convention hall. Construction period is planned to be fully completed in 1,460 working days. Until second week of Mar-16, Wijaya Karya has acquired 1.33trn of new contract, merely 2.5% of FY16 new contract target of IDR52.3trn (+107%YoY).
Mar 10,2016 08:28:50
PT Wijaya Karya (Persero) tbk ($WIKA) 4Q15 results: in line

· WIKA reported 4Q15 earnings of IDR235b (+23.4% QoQ, +9.4% YoY), bringing FY15 earnings to IDR625b (+2.8% YoY) which reflected to 99% of our FY15 forecast. Strong 4Q15 came from seasonality factor in the construction segment and early signs of recovery in the pre-cast segment.

· On the top line, WIKA booked 4Q15 revenue of IDR5.5t (+66.9% QoQ, +43.3% YoY), with FY15 revenue amounting IDR13.6t (+9.3% YoY), in line with our forecast.

· On a more positive note, 2015 operatng profit of IDR1.9t (+8.3% YoY), came higher than our forecast, which could be driven by margin recovery in the pre-cast segment.

· FY15 net margin, however, were slightly contracted to 4.6% from 4.9% in the same period last year, which was due to the spike in interest expense to IDR431b (vs. IDR198b last year). Judging from its debt level, WIKA did not withdraw significant amount of financing in 2015, so we would have to double check with the company on the significantly higher interest expense.

· Our last rating on WIKA was a HOLD.
Mar 07,2016 10:10:43
Wijaya Karya Beton ($WTON), We Expect Its GPM To Improve ….

… although it may still be below its historical highs of 13.1-14.9% since competition in the precast industry may intensify this year as its competitors increase their capacities. Also uncertainty of the high-speed train project could have a negative impact on its performance. FY15 NPAT was above our estimates, but lower then consensus, therefore we remain NEUTRAL on Wika Beton, while our DCF-derived TP of IDR870 (from IDR830, 8% downside) implies a 31.9x FY16F P/E.

¨ Competition remains stiff. We expect Wijaya Karya Beton (Wika Beton) to see intense competition from other state-owned enterprises (SOEs) such as Waskita Karya ($WSKT), Pembangunan Perumahan ($PTPP) and Adhi Karya ($ADHI). Waskita Karya is scheduled to grow its capacity to 2.35m tonnes pa from 1.63m tonnes pa and would become the second biggest precast producer in the market. Meanwhile, Pembangunan Perumahan may add 400,000 tonnes pa production capacity via its facilities in Sentul and Bekasi.

¨ We expect GPM to recover this year, given increased spending by the Government, while Wika Beton’s parent Wijaya Karya’s ($WIKA) new contract target would benefit the former. Thus, we expect its GPM to improve to approximately 12.8% in FY16-17, vs 12.4% last year. However, this is far below its historical high GPMs of c.13.1-14.9% (recorded in 2012-2014), given the potentially tough competition in the precast industry.

¨ The high-speed train (HST) project still has an uncertain future. The Ministry of Transportation has not given yet the approval for the project to the consortium (made up of Indonesian SOEs and a Chinese partner) tasked to the project. Meanwhile, the Chinese counterpart is requesting for a guarantee from the Government. While revenue contribution from the HST project may reach IDR6trn-8trn in 3-4 years, we expect contributions to begin in FY17– if the project goes through.

¨ FY15 results. Earnings of IDR174bn (-47% YoY) were about 9% above our estimate – but 10% below consensus – on lower-than-expected tax expenses, while revenue of IDR2.6trn (-19% YoY) was in line. GPM fell to 12.4% due to the lower utilisation rate early last year.

¨ Improvement in 4Q15. 4Q15 revenue (+68% QoQ, +16% YoY) contributed 42% of total revenue last year – above its normal c.27% contribution due to an increase in projects in the quarter. Meanwhile, NPAT surged >100% QoQ but fell by 18% YoY, due to the lower tax expenses.

¨ Maintain NEUTRAL with a DCF-derived TP of IDR870 (from IDR830) that also implies 31.2x FY16F P/E. Currently, the stock is trading at 33.9x FY16F P/E.
Jan 29,2016 11:12:40
$WIKA Realty mengembangkan 20 proyek, yang terdiri dari 11 proyek rumah tapak dan low rise serta sembilan proyek high rise. Dari 20 proyek tersebut, proyek-proyek landed house yang akan rampung tahun ini di antaranya adalah Tamansari Bukit Mutiara di Balikpapan, Tamansari Hills di Semarang, dan Tamansari Debang di Medan.
Jan 29,2016 11:10:17
Tahun 2016 ini, $WIKA Realty menargetkan dapat meraih nilai marketing sales sebesar Rp2,4 triliun, atau naik 71 persen dibanding pencapaian di 2015 lalu ($IHSG)
Quotes delayed, except where indicated otherwise.
1,950.00 20.00 (1.02%)
Wijaya Karya (Persero) Tbk.
Last Update 02:54:11