WIKA 1H14 net income grew a flat 0.8% y-o-y

Wijaya Karya (WIKA IJ, Under Review) revenue during 1H14 grew 10.8% y-o-y to IDR5.85trn while net income is relatively flat at IDR283bn (+0.8% y-o-y). Revenue during 2Q14 grew 15.3% y-o-y to IDR3.06trn where we estimate around 22% was contributed from its subsidiary PT Wika Beton (WTON IJ, Not Rated). However, 2Q14 net income tumbled by 6.7% y-o-y to IDR115bn due to significantly higher minority interests that we believe was caused by WTON’s IPO. As a result, 2Q14 net margin fell by 88.92bps y-o-y bringing 1H14 net margin to 4.8% (-47.76bps y-o-y).