Wintermar Tender ban unlikely to sink WINS
In a recent newsletter, Wintermar Offshore Marine (WINS) touched upon an unfortunate incident that resulted in tragic consequences for the crew of a small fishing vessel. Due to this episode, its PT Wintermar (subsidiary) has been prohibited from submitting tenders for one year by industry regulator SKK Migas. We believe the impact of this ban.
Read More...Pembangunan Perumahan Inflated Valuation is an Achilles’ Heel
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.
Read More...Voksel Electric Cabling the Country
We initiate coverage on Voksel Electric (VOKS) with a BUY and IDR2,400 TP – a 65% upside to the current price. VOKS is the undisputed leader in the manufacturing of high-medium voltage aluminum and fiber optic cables. As a major supplier to PLN and TLKM, it is the main beneficiary of Government megaprojects in power.
Read More...Wintermar Outlook Bright, For Both Long & Short Term
We trim WINS’ FY13-FY14 earnings forecasts by 2% and 8% on the back of high crew costs due to the growing demand for expertise in the OSV market. Its recent announcement of a share buyback plan should lead to positive sentiments. 21 oil and gas (O&G) industry blocks tender rights which are mostly offshore this.
Read More...Voksel Electric Brighter Prospects Ahead
Voksel Electric (VOKS)’s 1Q13 revenue rose 13% y-o-y to IDR600.4bn, but net profit edged down 2% y-o-y to IDR26.8bn. Yet, we believe margins are set to improve going into the year as commodity prices are bottoming out, thus allowing the group to accumulate raw materials at lower costs. VOKS’ IDR1.6trn orderbook as at end-April reaches.
Read More...Selamat Sempurna Within Expectations
SMSM’s FY12 net profit of IDR233bn (+69% q-o-q, +16% y-o-y) was in line with our forecast of IDR232bn owing to a seasonally stronger 4Q12 and better-than-expected margins. We maintain our NEUTRAL call and TP at IDR2,475 (13.2x FY13 PE). The counter is currently trading at a 14.1x FY13 PE. The Hydraxle effect Selamat Sempurna (SMSM)’s.
Read More...Wijaya Karya No Upside From MRT Project
WIKA’s consortium won CP104 & CP105 underground sections of the Jakarta MRT project, an IDR450bn addition to its orderbook but a mere 0.9% addition to the company’s topline annually for 2012-2017. Despite the high-profile nature of the project, we see no upside to WIKA’s FY13E earnings. Maintain NEUTRAL at IDR2,500 TP. The company is trading.
Read More...Mitrabahtera Segara Sejati, No Suprises
MBSS’ 1Q13 bottom-line grew 1.6% q-o-q and 4% y-o-y to USD10m, driven by a robust 56.9% y-o-y surge in floating crane sales (21% revenue contribution). 1Q13 net profit accounted for 25% of our FY13 net profit. The company’s cash position stood at USD21m on better receivables and working capital management, providing flexibility for larger capex.
Read More...TOTL 1Q13 Results Review: Little Insight Into Strategic Plans
TOTL booked IDR584bn in revenue and IDR53.5bn in net profit for 1Q13, up 69.7%/47.8% y-o-y and 27%/22% of our FY13 estimates respectively. We continue to be wary over its management’s vague strategic plans, as it hoarded for cash despite minimal capex disbursements. We maintain our NEUTRAL call and TP of IDR1,060, as its valuation reached.
Read More...Pembangunan Perumahan 1Q13 Results Review: Within Expectations
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.
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