Search result for: "Pembangunan Perumahan"

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.

Management of PT Pembangunan Perumahan (PTPP IJ, Under Review) has announced that the company will build precast production facilities through subsidiary PT PP Pracetak. The investment will be around IDR200bn. The facilities will be built in Cilegon (West Java), Sadang (West Java), and Bakauhuni (Sumatera). Management expect the construction period will take about 2 years..

PT Pembangunan Perumahan (PTPP IJ, Under Review) will begin groundbreaking of the IDR20trn Grand Kamala Lagoon superblock project in Bekasi, West Java. The 25 ha superblock area is designed to have 25 apartment towers in the next 20 years. Other than that there are several more projects to come such as the groundbreaking for IDR5trn.

Pembangunan Perumahan, Tbk (PTPP IJ) will begin groundbreaking of the IDR20Trn Grand Kamala Lagoon superblock project in Bekasi, West Java. The 25 ha superblock area is designed to have 25 apartment towers in the next 20 years. Other than that, there are several more projects to come such as the groundbreaking for IDR5Trn Grand Sungkono.

PT Pembangunan Perumahan (PTPP IJ, Under Review) has finalized the IDR44bn acquisition of Prima Jasa Aldodua (PJA), a heavy equipment rental company. According to management, the acquisition was made to reduce dependency on third party heavy equipment rental. On the other hand, until 1H14 PTPP has booked IDR8.4trn of new contracts (-11.5% y-o-y) or 35%.

Throughout 1H14, PT Pembangunan Perumahan (PTPP IJ, Under review) booked IDR4.6trn of revenue (+10.2% y-o-y) and IDR147bn of net profit (+2.2% y-o-y). The results are in-line with our forecast as well as consensus’ where top line and bottom line account for 32% & 22% respectively from our FY14F projection (Vs. 31% & 27% from consensus)..

Pembangunan Perumahan (PTPP IJ, UR) has acquired 31,995 shares (99.98%) of PT Primajasa Aldodua (PJA), an affiliated heavy equipment company, for IDR44.34bn. The heavy equipment company will be able to internally support PTPP’s core businesses and management targets IDR60bn of revenue generation from this heavy equipment.

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),.

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.

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,.