United Tractors New look, New Capabilities, Enlarged Group Positioned for Growth
Trinity announced its FY12 results yesterday Earnings increased 5.3% y-o-y to HKD540m, below market consensus by 6.3% and 2.0% respectively. If we exclude the one-off gain from the disposal of the Ferragamo JV, its net profit would have dipped by about 0.5% y-o-y to HKD511m. The miss was mainly due to a lower-than-expected revenue increase.
Read More...Wijaya Karya Solid Strategies In Place
We reiterate our strong BUY on WIKA at a TP of IDR2,200 It is trading at a premium to the industry at 21.2x P/E for 2013, but deservedly so. It has the most sustainable growth prospect due to its strategic ownership of WIKA Beton and its solid investments in human capital. Earnings upgrade on a.
Read More...Indonesia Construction Early Warning Signs
Driven by sanguine investor sentiments, the market cap of the Indonesian construction sector has expanded by 280% since 2012, outpacing its EPS growth potential of 18%-22% for 2013F. We propose a bellwether report to consider amid potentially weaker sentiments, while we continue to have a positive outlook on construction companies. At present, defensive stock picks.
Read More...Pembangunan Perumahan Fairly Valued
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.
Read More...Rukun Raharja a Small King
Company & industry background Rukun Raharja (RAJA) is one of Indonesia’s leading mid-to-downstream energy company which has a similar business model with Perusahaan Gas Negara (PGAS) focusing on the gas distribution and transmission business, yet in a much smaller form. It claims to be the only company besides PGAS that has such mid-downstream business chain..
Read More...ABM Investama Analyst Meeting Result (April 2013)
Several expansions and new contracts secured made by ABM Investama, Tbk (ABMM IJ) back in 2012, however the net earnings figure for FY12 is way below what we expected. This is mainly caused by the unexciting coal mining outlook which has dragged down margins for its mining contracting and coal mining business, putting severe pressure.
Read More...Mitrabahtera Segara Sejati, Results In Line; Valuation Still Cheap
Mitra Bahtera Segara Sejati (MBSS) managed to book a 23% y-o-y growth in FY12 net profit (in line with our estimate) despite negative earnings growth for the coal sector in FY12. This reflects the company’s resilient fundamentals against external shocks, backed by its long-term contract relationships and minimum guaranteed coal volume. Although capex is at.
Read More...Wijaya Karya Solid FY12 Showing
WIKA’s FY12 results were in line, with its revenue growing by 27% y-o-y to IDR9.8trn, 3%/4% above our and consensus estimates; while its bottom-line climbed 29% y-o-y to IDR458bn, 5%/4% ahead of our and street forecasts. The group plans to increase its gearing this year to secure additional power plant (IPP & EPC) projects. Higher.
Read More...United Tractors Passing the Ball to Pama
UNTR’s FY12 net profit came in at IDR5.78trn (-2% y-o-y), which was 4.5% above estimate and in line with our forecast. Its FY12 consolidated sales totaled IDR55.95trn (+2% y-o-y, +27% q-o-q), 2.1% above our estimate, which we deem in line. We are upgrading UNTR to NEUTRAL based on the following reasons: i) we see upside.
Read More...Wintermar BP Migas Takeover Takeaway
Wintermar Offshore Marine (WINS) remains attractive although we have seen the recent negative sentiment from the BP Migas which will be taken over by the Ministry of Energy & Mineral Resources (ESDM). WINS is currently trading at 7x and 6x 2012 -13 PER. Our take regarding the BP Migas takeover WINS contracts are signed with.
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