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P H
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.

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P H
Dec 14,2016 08:01:20

WTON obtained 2016 new contracts of IDR6tn

Wijaya Karya Beton ($WTON) has achieved higher than expected 2016 new contracts of IDR6tn (2016 target: IDR4.3tn), backed by a number of projects from readymix business, which started operations in the beginning of 4Q16. (Kontan.com)

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P H
Nov 30,2016 12:37:32

Wika Beton: NDR Key Takeaways

We brought Wika Beton ($WTON) management for one day NDR to Hong Kong. Most of the clients we met still positive on the overall Indonesia infrastructure story. The current currency volatility as well as the recent escalation in political tension appear  to become the main concerns.

The key highlights:

¨        WTON management is still positive on infra development on infrastructure development in Indonesia as the progress and execution capabilities have been considerably improved under the current government.

¨        WTON is confident to exceed this year new contract target of IDR4.3trn. As of 10M16, the company has secured IDR3.3trn worth of new contract and estimates to obtain around IDR5trn by year end, mainly due to Balikpapan - Samarinda toll road project

¨        WTON expects to have 13%-15% GM vs 9M16 GM of 13.6%, while the management remain positive on the new contract outlook next year and expect an increase of 25%YoY.

¨        High speed train project will benefit WTON next year. The company will likely to receive IDR1.5trn precast & ready-mix order from its parents Wijaya Karya (WIKA IJ, BUY, TP IDR3,370) and to pursue another IDR1.5trn order from China party.

¨        They are confident to compete with other precast players as they have more variety of products and well known reputation in term of precast quality. However, we do acknowledge the current stiffer competitive landscape especially from SOEs such as Waskita Beton Precast ($WSBP).

We maintain our BUY call on the company as we anticipate more new projects will be signed by year-end and will likely  be recognized as revenue  next year. We expect stronger year for WTON in FY17 underpin by the start of the HST project next year and government’s bigger infrastructure budget in FY17F.

As one of the biggest suppliers of railway sleepers in Indonesia, Wijaya Karya Beton (Wika Beton) will also benefit from the Government’s plan to build 3,258km of railway tracks across the country in five years.

Our TP of IDR1,070 is based on a DCF valuation assuming the following: RF of 7.5%, WACC of 12.7% and TG of 5%. It also implies 28.5x FY17F P/E. (Dony Gunawan)

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P H
Jul 25,2016 09:12:47
$WTON : PT Wijaya Karya Beton Tbk membukukan kontrak baru sebesar Rp1,931 triliun, sampai Juni 2016. Jumlah tersebut setara 44,9%dari target kontrak baru sebesar Rp4,3 triliun. (INFOBANK)

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P H
Jun 07,2016 12:26:34
BERITA SAHAM 07 JUNI 2016


•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%

$ERAA $TELE $TRIO $GLOB $BISI $CPIN $MAIN $JPFA $WTON $WIKA $ACES $RANC $AALI $LSIP $SIMP $SMAR $SGRO $TLKM $BMRI $BBRI

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( OCBC, DISCLAIMER ON)
Bull
P H
May 13,2016 09:30:02
PT Wijaya Karya Beton Tbk: Key Takeaways from Analyst Meeting  (WTON, Rp910, Buy, TP Rp1.125).
 
 
Kami menghadiri analyst meeting WTON terkait dengan kinerja 1Q16. Meskipun kompetisi yang semakin panas, manajemen masih didikung oleh prospek perusahaan, yang didorong oleh proyek infrastruktur seperti High Speed Railways (HSR) Jakarta-Bandung. Hingga Apr16, WTON telah membukukan kontrak baru Rp1,3 triliun.
 
 
Focus in product quality and new innovation. Pada 2015, WTON menguasai 43% pangsa pasar dari total penjualan beton pracetak dan 36% dari total kapasitas produksi. Untuk mempertahankan posisi teratasnya, WTON berencana untuk lebih fokus dalam inovasi dan meningkatkan penjualan produk beton pracetak yang lebih modern (seperti pracetak untuk bangunan bertingkat tinggi dan box girder).
 
 
Dalam antisipasi jumlah yang lebih tinggi dari proyek, WTON juga berencana untuk meningkatkan belanja modal untuk memperluas kapasitas pabrik (saat ini: 52 lini produksi dengan total luas 137ha).
 
 
Rising reliance on infra and energy projects. Pada 1Q16, mayoritas lini bisnis WTON berasal dari infrastruktur (1Q16: 60% vs 2015: 49%) dan segmen energi (1Q16: 30% vs 2015: 18%). Ke depannya, kami meyakini tren ini akan terus berlanjut, mengingat meningkatnya karya infrastruktur dan kontrak potensial dari proyek pembangkit listrik baru (seperti PLTU Pangkalan Susu dan Batang).
 
 
More contracts are coming from HSR project. Dengan target kontrak baru FY16 Rp4,3 triliun, WTON mampu membukukan Rp1,3 triliun pada 4M16 (1Q15: Rp550 miliar). Target manajemen tidak termasuk proyek HSR, yang menurut perkiraan manajemen WTON bisa mengkonsumsi 3 juta ton produk pracetak.
 
 
WTON berharap untuk memproduksi produk pracetak di pabrik-pabrik mobile untuk mengurangi biaya investasi. Dengan bekerjasama dengan pelaku industri semen dan baja lokal, WTON juga berencana untuk memasok semen ready-mix untuk proyek HSR. Penjualan ekstra dari ini akan memberikan tambahan positif untuk asumsi kontrak 2016-18F HSR kami yaitu Rp6,5 triliun.
 
 
Maintain Buy call. Didasari laba per saham (EPS) CAGR 2016-18F WTON yang solid sebesar of 33,1%, kami masih optimistis terhahdap kinerja WTON ke depannya. Penurunan harga saham di pasar baru-baru ini menyediakan ruang lebih terhadap kesempatan membeli (buying opportunity). TP kami Rp1.125 didasari valuasi rasio harga saham per laba (PE ratio) rerata 2016-17 sebesar 25x. (Bob Setiadi/Riset Mandiri Sekuritas)
Bull
P H
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.
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P H
Apr 28,2016 08:41:21
WTON 1Q16  earnings nearly triple to Rp50 tn

Wijaya Karya Beton (WTON) registered 1Q16 net profit of Rp50.2 bn, up 196% YoY, driven by rising revenue and margin expansion across the board.  This came in-line with our and consensus expectations (at 19% and 17% of our and consensus FY16F NP)  as historically 1Q earnings met 9%-24% of full year numbers in 2014-15.  WTON’s 1Q16 revenue grew by 71% YoY on higher contracts and formed 24% of our FY16F, while GPM expanded by 440bps to 12.4%  on improved utilization rate that reduce cost per unit. These further helped operating profit to increase 352% YoY to Rp73.2 bn with OPM expanding by 620bps to 10%. On quarterly basis, 1Q16 net income was down 43% QoQ on seasonality as 4Q historically the strongest quarter, forming 33%-51% of full-year numbers in 2014-15.

Comment: WTON is currently trading at 2016F PER of 31x, below historical mean of 33x. We maintain our Buy rating for WTON with TP of Rp1,100.
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P H
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.
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