ADHI Cuts FY14 New Contract to IDR15.2Trn
Management of Adhi Karya (ADHI IJ, BUY, TP: IDR3,745) announced that FY14F target new contract is revised down from IDR21trn to IDR15.2trn. This was due to several project delays as a result of the uncertainty from election, thus several project owners are waiting for the new cabinet to be formed. At the same time, management also trims its target revenue from IDR14.7trn to IDR10.5trn. We have factored in the possibility of downward revision from the company. Therefore, ADHI’s current new contract achievement target of IDR15.2trn is in-line with our target of IDR15trn. Meanwhile, take note that the company has not gained major government projects and all of the state-owned contractors are waiting for government projects to be disbursed in this 2H14.
