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PGAS’ long term outlook remains bright despite its short term gas supply concerns. As the country’s largest gas distributor with 85% market share, it should be well positioned to venture into other gas-related businesses as well as embark on upstream takeovers. We recommend PGAS as a defensive rotational play given its strong domestic exposure, which.

Despite short-term supply concern for PGAS, long-term outlook remains bright as PGAS as the largest gas distributor (85% market share) should be well positioned for ventures to any diversified gas related forms and upstream takeovers. PGAS is recommended as a defensive rotational play given its strong domestic exposure and less impacted from inflation impact. We.

Acquiring a growing and profitable company… We value positively SMSM’s acquisition of 49% in its sister company Hydraxle Perkasa (HP) last month. HP, which mainly produces dump body and hoists, is the market leader with a 20%-30% share in this growing fragmented market, whose demand is driven by the domestic mining and plantation sectors, and.

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.

We raise our earnings estimates by 7.8% for FY13 in light of robust contributions from its higher-margin Mechanical & Electrical (M&E) and Industrial Concrete segments. Even so, we downgrade our call to a NEUTRAL amid minimal prospects for an earnings surprise on top of our revised estimates and WIKA’s historic high valuation. It is trading.

We raise our FY13 earnings estimate for Wijaya Karya (WIKA) by 7.8% in light of robust contributions from its higher-margin Mechanical & Electrical (M&E) and Industrial Concrete segments. Even so, we downgrade our call to a NEUTRAL given limited room for an earnings surprise on top of our revised estimate and WIKA’s historic high valuation..

VOKS is the undisputed leader in manufacturing aluminum and fiber optic cables in Indonesia. The company is a major supplier to PLN and TLKM, making it the main beneficiary of the Government’s megaprojects in power and telco, which are worth at least USD4.5bn in opportunities to the company for the next 10 years. VOKS is.

WINS’ laggard movement vs JCI’s rally does not reflect the attractiveness of its: i) double-digit earnings growth forecasted for 2013/14, and ii) 42% and 37% 2013 P/E discounts to regional O&G services and OSV peers respectively. We see imminent re-rating and upside potential on the back of its margin expansion and fleet rejuvenation as well.

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.

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.