Kategori: Infrastructure Transportation

Wintermar Offshore Marine, Tbk (WINS IJ) 1H11 net profit soars 68% y-o-y to IDR79bn, accounting 52% of our FY11 target. The earnings jump is mostly on the back of owned-vessel revenue growth (+36% y-o-y) and strong growth in the 3rd party chartered vessel (+138% y-o-y) division which provides smaller margins in nature. WINS is currently.

WHAT’S BREWING? Wintermar Offshore Marine (WINS) issued several announcements over the past 1 month, which are i) ordered a platform supply vessel (PSV) for deepwater drilling support, ii) plans to gradually sell off 38 older vessels, and iii) obtained a USD27m loan from Bank Mandiri. We believe strong support from the cabotage ruling has enabled.

We upgrades by 6% our earnings target for 2011 to IDR153bn (+44% y-o-y) on the back of a share of net income from its associate Fast Offshore Supply (Singapore) amounting to IDR24bn (based on the company’s guidance). We like WINS’ efficient spending of its 2011 capex on vessel expansion this year (12 added vessels) as.

INVESTMENT MERITS 40 years of experience in the industry delivering high standards Upside risk supported by the proposed cabotage principle Vessel expansion into higher value segment Reputable international clients with long-term contracts Currently trading at 8.1x 2011 PE, 59% discount to the sector COMPANY PROFILE Established in 1970, Wintermar Offshore Marine (WINS) operates offshore support.

Wintermar Offshore Marine, Tbk (WINS IJ) booked an impressive 1Q11 net profit amounted to IDR44bn (+143.2% y-o-y; accounts 31% to our FY11 forecast) driven by fleet expansion and third party chartering. This translates to a net profit margin of 19.7% in 1Q11 from 17.6% in 1Q10. WINS’ vessel expansion remains on track along with its.

Wintermar Offshore Marine, Tbk (WINS IJ) provides upstream services for the oil & gas sector. As of 2010, WINS have 59 vessels, such as fast utility vessels, tug boat, oil barge and anchor handling tugs. WINS charter its own vessels to customers with additional optional services such as providing crew, ship management and catering services..

Clarifying the cabotage issue Last week the media reported that cabotage regulations would be eased to allow foreign companies to operate certain types of foreign-flagged vessels. At a glance, this seems contrary to earlier perceptions that the opportunity would be limited to Indonesian-owned vessels using the domestic flag. We would like to highlight several points.

Wintermar Offshore Marine (WINS) is set to deliver an earnings CAGR of 32.8% from 2010-2012 powered by higher rates from its owned vessels, which will bolster its 2011 topline to IDR864bn (+34% y-o-y) before escalating to IDR1,052bn (+21.7% y-o-y) in 2012. The company’s owned vessels will contribute 71.9% of total revenue in 2011 against 56%.

Opportunity to gain market share From May this year, Indonesia’s shipping law will no longer allow foreign-flagged vessels to operate in Indonesian coastal waters unless they are in joint ventures in which there is no more than 49% foreign ownership. Management believes this would give WINS the opportunity to get a slice of foreign competitors’.

EXCL Poised Excel Further. XL Axiata, Tbk (EXCL IJ) remains our top pick for exposure to Indonesian telecoms given.  First, its strong management/operational execution. Second, the still-robust prospects within the telecoms sector on a proliferation of cheap and attractive low-priced handsets amid rising take-up of small screen access. Link Net Simply the best Shelf Registration.