Equity Research

WSKT

Tanggal publikasi: 2016-04-22 10:36:07

Net Profit in The First Quarter 2016
The Company posted revenue in the first quarter 2016 of Rp 3.5 trillion and net profit of Rp 130 billion. Net profit and revenue grew 983.3% and 149.5% in 1Q16. The company's revenues are mostly from the construction of the motorway with a share of 40% -50%. In addition, other revenues derived from the sale of concrete with a share of 20% -25%. Concrete products are widely used to support the construction of toll roads. Other revenue comes from property and energy business lines. The company’s target for 2016 contract is around Rp 100 trillion consist of 34% new contract or Rp 34 Trillion and 66% carry over or Rp 66 Trillion from last year.

Waskita Beton Mulls IPO
PT Waskita Karya ensure that it will offer shares of it subsidiary, PT Waskita Beton Precast, to the public in third quarter of 2016. Waskita Beton Precast (WBP) will use financial statement April 2016 for its initial public offering. WBP plans to offer 35%-40%. WBP targets obtaining proceeds of IDR 3.5 trillion- 4 trillion.


Recommendation and Valuation
We estimate WSKT will continue grow. Up to the five year. WSKT get new contracts 8 Trillion or 13% of the contract target this year to Rp 66 Trillion. Therefore we recommend a BUY with fair value of Rp 2,545 per share. These values imply PER’16 13.9x and 2.67x PBV. We use the calculation of discounted cashflow (DCF), assuming a terminal growth of 3% WACC 8.6% and margin of safety 7%.

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WSKT Company Update.pdf