Q--Daily News-2015-Jun-20150610-Te.Mdi
Thursday, 11 June 2015 CONSTRUCTION SECTOR/COMPANY UPDATE BUY Waskita Karya Target Price, IDR 2,150 Upside 28.7% On higher ground WSKT IJ/WSKT.JK Post-rights issue, Waskita will be the largest state contractor, thus the company will Last Price, IDR 1,670 have no problems in financing either its future investments or working capital, No. of shares, mn (post-rights) 13,567 ensuring, we believe, a brighter future for the company and a faster pace of growth. Going forward, Waskita’s ventures into toll road investments should boost its order Market Cap, IDR bn 22,657 book and lead to higher profitability as well. All in all, our post-rights valuation (US$ mn) 1,702 suggests TP of Rp2,150. Waskita remains as one of our Top Picks in our construction 3M T/O, US$mn 1.6 sector universe. BUY. Last Recommendation The company that delivers 22-May-2015 BUY IDR 2,100 Backed by its growing order book and sound reputation, Waskita growth story has continued to 04-May-2015 BUY IDR 2,100 unfold and earnings quality has improved. Post-IPO, Waskita successfully restructured its debts 05-Mar-2015 BUY IDR 2,100 and, at the same time, the IPO proceeds gave the company more flexibility in its balance sheet to WSKT relative to JCI Index work on larger projects. Subsequently, Waskita’s total carry-over projects in 2015 stood at Rp20.3tn, or 2.0x its FY14 total revenues – meaning that projects are sufficient to fuel growth. All in all, the IDR WSKT (LHS) Relative to JCI Index (RHS) % 2,000 155 new government’s infrastructure acceleration program should benefit Waskita given that government-related projects remain very important to the company.
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