WIKA Signed USD125M Myanmar Contract

Wijaya Karya (WIKA IJ, Neutral, TP: IDR3,100) has signed a USD125m contract with Noble Twin Dragon Pte. Ltd (NTD) to build Pyay Tower & Residence in Yangon, Myanmar. The tower will consist of 23 floors and 3 basements and the construction project will take 3 years period starting October 2014. WIKA’s scope of work in this project includes civil works, architectural, mechanical electrical, and plumbing. Including this new contract, management estimate new contract until August 2014 has reached ~IDR11.4trn or 57% from our FY14F estimate. Thus, we still maintain our estimate and recommendation while waiting for the Government projects to be disbursed to state-owned contractors.