Wijaya Karya Beton 9M14 earnings reached IDR223.35bn (+15% y-o-y)

Wijaya Karya Beton (WTON IJ, BUY, TP: IDR1260) booked IDR223.35bn of net income during 9M14 (+15% y-o-y), this was supported by revenue that increased to IDR2,322bn (+13.8% y-o-y). Wijaya Karya Beton’s 9M14 earnings was relatively in-line with our/consensus estimates that reflects 72%/71% from full-year projection. On quarterly basis, 3Q14 net income declined to IDR57.2bn (-33.4% q-o-q) as a result of revenue that tumbled to IDR644.2bn (-25.5% q-o-q). We presume the decline in 3Q14 was due to some project delays that was caused by uncertainties from project owners regarding the transition of new president as well as the formation of new cabinet. Nonetheless, we still believe that improvements can be seen in the upcoming quarter as majority of government projects are yet to be disbursed.