Wintermar Positive Outlook
Positive move
Wintermar Offshore Marine, Tbk (WINS IJ) plans to make a rights issue via the issuance of new convertible bonds and ordinary shares amounting to 340m shares, representing 9.56% of the company’s enlarged equity. The company plans to use the proceeds to expand the company’s fleet from 2012–2014. It is worth noting that in 2011, WINS added 13 new vessels amounting to USD70m, bringing its total number of vessels to 67.
The rights issue is in line with our expectation that WINS will use other channels to raise funds besides bank loans. We believe this move is positive as it will enable WINS it to capture the cabotage momentum and the opportunities to acquire mid-high end vessels to cater to the demands from offshore oil & gas projects.
Kapuas Prima is Ready for Mining Exploration
First Day on IDX, Kapuas Prima Coal’s Stock Price Increase 70%
ORI014 Sales Only 67% of the Target
Marga Lingkar Jakarta Bond Ratings at Level AAA
Government Targets Non Oil and Gas Industry to Increase 5.67% in FY18
Customs and Excise Revenues 67.11% of Target
A shiny outlook
WINS is currently participating in several tenders for offshore projects in the Eastern part of Indonesia. As at 28 March 2012, the total contracts in hand are worth USD172m, up from USD119m in 2011. We believe that there are abundant opportunities in securing offshore projects as WINS is just getting a drop in the ocean. We believe that armed with the contracts in hand and its earnings growth story, WINS should be able to leverage even further. Note that we expect the company’s 2012 net gearing to be at 46%.
Indo Tambangraya Profit Surged 147%
Sido Muncul’s Net Profit IDR123Bn in 2Q18
Telkomsel to Work with Grab to Expand
KEB Hana Third Party Fund IDR22.50Trn
The Processing Industry’ Performance was the Strongest Since 3Q14
Indonesia Government to Reopen PBS013 on Tuesday’s Auction
High margins from higher proportion of owned vessels
Despite a 5.8% q-o-q decline in 1Q12 revenue, the company’s gross profit surged 24.6% q-o-q. This was due to a strong contribution from owned vessels and a lower contribution from third party chartered vessels, which fetch very thin margins. The company’s 1Q12 gross margin hit 33.7%, which was the highest since IPO.
We believe this is a testament of the shift in its business model to focus on higher value vessels that command higher charges. The company’s 1Q12 pre-tax profit soared 67.2% q-o-q, mainly due to the lower forex loss of IDR10bn compared to a loss of IDR20bn in 4Q11, while its net profit hit IDR39bn (+51.4% q-o-q and -12% y-o-y). Valuation. WINS is currently trading at 8x and 6x 2012-13 PERs, which is a discount to its peers. We maintain our BUY call, with a target price of IDR690.
