Search result for: "PTPP"

Built during the Soekarno presidential era, Semanggi flyover is widely known as an iconic structure of Jakarta over the years. Located in the heart of Jakarta, the clove-shaped flyover connects the most crowded areas including Sudirman Central Business District (SCBD), Thamrin, Senayan and Kuningan within its 3-km radius. These areas cover the city’s 2 major.

We just visited one of WIKA’s project site, Soekarno-Hatta Terminal 3 Ultimate (T3U). Here are our key takeaway points: Soekarno-Hatta Terminal 3 Ultimate is the extension of the existing Terminal 3 and meant to be the capacity extension to the currently over-capacity Soekarno-Hatta airport. The project is worth IDR4.7trn and the construction is being done.

PTPP booked 38.6% of its FY13F net profit target in 1H13 – much higher than the 19%-21% achieved in the past two years. Hence, it is cautiously optimistic of posting robust FY13F earnings and guides for a new IDR400bn earnings target (8.1% above earlier forecast). As at end-June, 48.2% of the new FY13 target contract.

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.

Investment Merits WIKA’s strong ties with the national power and oil & gas (O&G) companies make it the frontrunner to secure high-margin engineering, procurement and construction (EPC) projects. Strategic ownership of precast manufacturer WIKA Beton ensures consistent supply despite increasingly tight raw materials market. Widest net margins among other national construction companies (5.0% in FY13F),.

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.

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.