Mitrabahtera Segara Sejati, Deserve A Re-rating
Mitrabahtera Segara Sejati’s (MBSS) share price has gone up and the stock has outperformed the JCI and is the best outperformer against the coal supporting industry and the coal mining industry relative to the JCI stretching back for the past one year. Following the positive reaction to the market over the last couple of weeks,.
Read More...Wintermar Long-term Outlook Remains Bright
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 8x and 7x 2012 -13 PER. Our take regarding the BP Migas takeover WINS contracts are signed with.
Read More...United Tractors Notes
We attended United Tractors’ (UNTR IJ, SELL, TP IDR19,700) annual analyst meeting yesterday and witnessed an unusually pessimistic note from the largest player within the Indonesian heavy equipment market. Yet, we are delighted to learn that our new call and target price on UNTR found a firmer foundation as the company confirmed of our FY.
Read More...Wijaya Karya Rising Again on Sector’s Re-rating
We reiterate our strong BUY on WIKA with a new TP at IDR1,850 TP, providing a 20% upside to the current share price. We are basing our TP on a target PE of 16.5x over its FY14 earnings, which is +1 standard deviation above its historical average forward PER. We have upgraded our target mainly.
Read More...Indonesia Constructions
Sector Outlook We maintain an OVERWEIGHT call for the Constructions sector upon the following reasons: i) valuations are reasonable compared to regional players, ii) the government’s infrastructure projects are expected to accelerate earnings growth, iii) there are lower risks in executing projects, as laws will be enforced, iv) the property market’s outlook is solid for.
Read More...Pembangunan Perumahan a Jolly Good Year
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.
Read More...Indonesia Constructions
We are re-initiating coverage on the construction sector with an OVERWEIGHT for the following reasons: i) valuations are reasonable compared to regional players, ii) the government’s infrastructure projects are expected to accelerate earnings growth, iii) there are lower risks in executing projects, as laws will be enforced, iv) the property market’s outlook is solid for.
Read More...Total Bangun Persada Meeting Targets
We are confident that TOTL will achieve its growth target this year, but a 350% appreciation in its share price since last year has pushed its valuation to 15.2x 2013 P/E – on par with our target P/E and reflecting its earnings expectation for FY13. Macro headwinds and the company’s apparent lack of an expansion.
Read More...TOTL the Construction Sector’s Dark Horse Performer
We are re-instating coverage on TOTL with a BUY and IDR1,060TP The company is currently trading at 17.7x and 13.4x 2012E & 2013E PER compared to the industry at 18.8x and 14.3x. We like TOTL’s operations for the following reasons: 1) robust order book growth on the back of loyal customer base, 2) direct contracting.
Read More...United Tractors On Firm Ground
WHAT’S BREWING? UNTR has been reported to submit two proposals to the state power company PLN for a 2x600MW and a 600MW power plant in South Sumatera (dubbed as PLTU Sumsel IX & X). The plants to be developed are the so-called “mine-mode”s, where the power generator itself is located at the coal mining site.
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