Live Chat Software
Berita Dan Riset Terbaru
Ide Perdagangan

Stock Shoot - MEDC
November 21, 2017 10:56 WIB

Kinerja saham MEDC cenderung menguat untuk menguji target tertinggi pada harga 950, dimana 950 merupakan harga tertinggi MEDC yang telah di uji selama 52 minggu sebelumnya. Download artikel selengkapnya(417.68 Kb)

Riset Perusahaan

Danareksa Equity Snapshot - WSKT 21 November 2017
November 21, 2017 09:58 WIB

Waskita Karya(WSKT IJ)

No glory without sacrifice

We maintain our BUY call on WSKT with a new TP of IDR2,700 (old: IDR2,800). The development of toll roads and the funding remain the key issues. We expect the order book in 2018 to grow 6%yoy to IDR155tn despite the lower new contracts target. WSKT’s order book is the largest among its peers.

2018 contracts target. WSKT’s order book is the largest among the construction companies in Indonesia. We expect the 2018 order book to reach IDR155tn (+6%yoy) despite the lower new contracts target. The new contracts in 2018 are expected to reach IDR50.0tn, or lower than the IDR60.0tn of new contracts targeted in 2017.

Acquiring toll road projects… WSKT, through Waskita Toll Road (WTR), owns 18 toll roads with a total length covering 997km of which more than 82% is still under construction. The management claims that the investment needed for the toll roads will reach more than IDR100tn while “toll road concession rights” booked as of Sep reached IDR27.1tn, indicating that around IDR73tn of funds is needed to develop the toll roads.

…to enlarge assets. Since entering the toll road business in 2015, WSKT’s balance sheet has increased significantly. Total assets, which only reached IDR12.5tn at the end of 2014, have since grown to IDR87.7tn as of Sep17. However, the leverage also increased (up from 1.1x in Dec16 to IDR1.7x as of Sep17). This includes the IDR5.2tn of additional equity received in 2015. However, with only IDR22.0tn of equity as of Sep17, WSKT will have difficulties in carrying out all the toll road projects. As such, the company plans to divest 10 of its toll roads through IPO and direct divestment. We have not included the divestments into our forecast.

Waiting for the payment of receivables. WSKT’s receivables (trade receivables, retention receivables, and gross amount due from customers) as of Sep17 reached IDR24.8tn with the Ministry of Transportation (MoT) as the biggest debtor with unpaid bills reaching IDR5.3tn or 21% of the receivables. Other large debtors include Hutama Karya, which owes IDR4.8tn (19.3% of the receivables) and Jasamarga Semarang Batang, which owes IDR2.7tn (11.1%).

Valuation. We expect single-digit growth in the 2018 net income due to higher financing costs and minorities and 22%yoy growth in revenues. We maintain our BUY call on WSKT with a lower TP of IDR2,700 (old: IDR2,800). Our new TP is based on: 1) -1SD PE multiple of 11.0x (old: +1SD of 16.5x PE), and 2) 2018 EPS of IDR246 (old: 2017 EPS of IDR176).

… read more 20171121 WSKT