Kategori: Property Real Estate

Company Profile Nusa Raya Cipta engages in commercial, residential, industrial and civil construction works. It was first listed on the Indonesian Stock Exchange in June 2013. NRCA is a subsidiary of industrial property developer PT Surya Semesta Internusa Tbk (SSIA, BUY, TP IDR1,600). Highlights NRCA at a glance NRCA is one Indonesia’s leading high-rise construction.

Company Profile PTPP provides civil engineering and building construction services. It has recently expanded into EPC developments and industrial concrete manufacturing, as well as property developments. Highlights The port projects specialist PTPP’s orderbook, which is expected to reach ~IDR35trn by end-FY13, is bolstered by its expertise in port development, as well as its strong working.

Company Profile Nusa Raya Cipta engages in commercial, residential, industrial and civil construction works. It was first listed on the Indonesian Stock Exchange in June 2013. NRCA is a subsidiary of industrial property developer PT Surya Semesta Internusa Tbk (SSIA, BUY, TP IDR1,470). Highlights NRCA at a glance NRCA is one of the leading private.

PTPP has guided for IDR140bn net profit in 1H13 (up 115% y-o-y) over IDR3.2trn revenue (up 60% y-o-y). At 38% of its FY13 bottom-line target, PTPP is slated to achieve ~8% above the company’s IDR370bn official guidance for FY13. In light of the positive fundamental catalyst amid a weak share price, we call for a.

PTPP has indicated 1HFY13 revenue and net profit of ~IDR3.2trn and ~IDR140bn respectively on strong new contract successes. This bottomline represents 38% of its FY13 target, indicating it can achieve ~8% above its IDR370bn FY13 guidance. In light of this positive catalyst amid a weak share price, we call for a BUY with a TP.

We maintain our NEUTRAL call on PTPP at a new IDR1,600 TP, as we roll over our valuation to FY14, implying a 17.0x target 2014 P/E. We foresee that the company will reach its FY13E net profit target on the back of a robust construction pipeline, although its 90% share price rally and inflated valuation.

PTPP’s 1Q13 revenue and net profit came in at IDR1.28trn and IDR43bn, up 44.3% and 33.6% y-o-y respectively, in line with our estimates. Net profit grew at a slower pace than topline as the high-margin segments such as property, realty and EPC posted lower margins y-o-y. We attribute this to PTPP’s seasonality and expect margins.

PTPP warrants a discount to the industry’s average P/E as it is the most leveraged company in the business, which poses downside risks on its ability to take on additional mega-projects. A puzzling 1Q13 result guidance and challenges over its dominance on port projects lead us to deem the stock as having reached its fair.

Upon a limited audit review of their financial statements for purposes of bond issuance in FY13, PTPP finally released its 9M12 financial statements yesterday. The company posted 9M12 revenue of IDR3.9trn (up 34% y-o-y, 95% q-o-q), arriving at IDR106bn worth of net profits (up 73% y-o-y, 63% q-o-q). Top-line financial statement items are in-line with.

We initiate coverage on PTPP with a BUY and IDR950 TP, representing a 17% upside to the current share price. Our TP is based on a target of 11.3x PER over the company’s FY14 earnings, at par with its historical average rolling PER. We like PTPP for its strong 20.3% CAGR in earnings between FY10-FY12,.