reports
- Selvi Ocktaviani
Adhi Karya (ADHI IJ) - 2022: Net Profit Up 47% yoy
ADHI’s net profit for 4Q22 surged 458% qoq and 58% yoy to Rp60b. 2022 net profit was Rp81.2b, coming in above our and consensus estimates. ADHI's book value rose to Rp8.8t, thanks to Rp2.67t new capital raised in Nov 22, which strengthened its balance sheet and resulted in lower DER of 1.2x (from 1.8x). The LRT is targeted to start commercial operations in Jul 23, and should boost ADHI’s TOD property marketing sales. Maintain BUY. Target price: Rp645.
- Maskun Ramli
- Selvi Ocktaviani
- Benjaphol Suthwanish
- Damon Shen
- Heidi Mo Jinghui
- Jacquelyn Yow Hui Li
- Jieqi Liu
- John Cheong Ming Chern
- Julia Pan Mengyao
- Kasemsun Koonnara
- Philip Wong
- Selvi Ocktaviani
- Tham Mun Hon
Regional Morning Notes - Wednesday, March 08, 2023
GREATER CHINA Economics Trade: Ytd trade – A mixed bag. Results Trip.com (9961 HK/BUY/HK$314.40/Target: HK$453.00): 4Q22: Earnings beat; robust 1Q23 guidance on pent-up demand. Wharf Real Estate Investment Co (1997 HK/HOLD/HK$44.25/Target: HK$45.47): 2022: Core net profit down by 5%; DPS maintained, returning to pre-pandemic mode. INDONESIA Results Adhi Karya (ADHI IJ/BUY/Rp432/Target: Rp645): 2022: Net profit up 47% yoy, above our and consensus estimates. MALAYSIA Update Farm Fresh (FFB MK/HO...
- Selvi Ocktaviani
Adhi Karya (ADHI IJ) - Fully Achieves 2022 New Contract Target And Rec...
ADHI fully achieved its 2022 target by booking Rp23.7t in new contracts (+57% yoy). The rights issue is already completed, and uncertainty over the share price has lifted. ADHI received Rp2.67t in new equity which strengthened its balance sheet with a lower DER of 1.2x (from 1.8x). LRT projects reached 95% progress and should start commercial operations in Jul 23, which should boost ADHI’s TOD property marketing sales. Upgrade to BUY. Target price: Rp645.
- Maskun Ramli
- Selvi Ocktaviani
- Adrian Loh Tzum Yung
- Benjaphol Suthwanish
- Kasemsun Koonnara
- Kong Ho Meng
- Philip Wong
- Sabrina Soh
- Selvi Ocktaviani
- Tanaporn Visaruthaphong
Regional Morning Notes - Thursday, February 09, 2023
GREATER CHINA Update Hong Kong Exchanges and Clearing (388 HK/BUY/HK$337.20/Target: HK$409.65): Riding on improved ADT, multiple catalysts in the offing. INDONESIA Update Adhi Karya (ADHI IJ/BUY/Rp492/Target: Rp645): Fully achieved 2022 new contract target and received Rp2.67t in new capital. Upgrade to BUY. MALAYSIA Results British American Tobacco (ROTH MK/BUY/RM12.80/Target: RM16.05): 4Q22: Results within expectations as sales recorded decent growth amid opex doubling. Maintain BUY. Update ...
- Selvi Ocktaviani
Construction – Positive Impact Of EV Industry Development On Contracto...
The government is highly supportive of the EV industry, with the contractors WIKA (Gesits motorcycle production) and PTPP (KITB development and nickel mining service) having projects related to the EV industry. The revenue contribution from Gesits is still small; WIKA sold 1,200 units in 2022. PTPP booked Rp1t in revenue (7% contribution) from Weda Bay Nickel in 9M22. We believe the development of the EV industry could bring more upside revenue. Maintain MARKET WEIGHT. Top pick: PTPP.
- Maskun Ramli
- Selvi Ocktaviani
- Selvi Ocktaviani
Construction – Development Of IKN To Have Neutral Impact On Constructi...
IKN’s development has started, with modular housing by WEGE and ADHI becoming the first buildings in IKN. According to IKN’s head of authority, 59 LOI from various investors have been received, with three investors planning to invest Rp41t and having received principal permits. However, we believe that investors will adopt a wait-and-see stance due to the high uncertainty of macroeconomic conditions as well as the upcoming presidential election. IKN’s development may not significantly impact the...
- Maskun Ramli
- Selvi Ocktaviani
- Selvi Ocktaviani
Construction – Top-line Recovering But Bottom Line Struggling To Reach...
New contract achievements grew 40%, signalling that infrastructure projects are starting to resume, while IKN projects may also contribute to new contract achievement. Material prices have normalised. Burn rate and revenue are expected to recover but the bottom line may remain depressed as the high gearing and burden of interest expense cannot be resolved in a short period. Maintain MARKET WEIGHT. Top pick: PTPP.
- Maskun Ramli
- Selvi Ocktaviani
- Maskun Ramli
- Selvi Ocktaviani
- Selvi Ocktaviani
Adhi Karya (ADHI IJ) - 7M22 New Contract Achievement And 2Q22 Revenue ...
ADHI’s performance improved significantly, with 7M22 new contract achievement growing 104% to Rp15.9t and 2Q22 revenue growing 119% yoy. On the rights issue, we think ADHI’s exercise price should be under the current 0.5x P/B valuation to be attractive enough for shareholders to subscribe. Therefore, ADHI may issue 150- 200% new shares. The downside of the rights issue is that it could risk up to a 50% dilution to minority shareholders. Maintain HOLD. Target price: Rp775.
- Adrian Loh Tzum Yung
- Ariel Poh Yun Li
- Arsit Pamaranont
- Carol Dou Xiao Qin
- Chong Lee Len
- Jack Goh Tooan Orng
- Jo Yee Ng
- Johnny Yum Chung Man
- Keith Wee Teck Keong
- Sabrina Soh
- Selvi Ocktaviani
- Sunny Chen
- Vincent Khoo Boo Aik
- Zhifeng Shen
Regional Morning Notes: Tuesday, August 30, 2022
GREATER CHINA Results Foshan Haitian Flavouring & Food (603288 CH/BUY/Rmb78.57/Target: Rmb97.00): 1H22: Double-digit growth in 2Q22; upbeat on multi-product strategy. Kingboard Laminates (1888 HK/HOLD/HK$7.10/Target: HK$6.60): 1H22: Net profit in line with profit warning. PICC Property and Casualty (2328 HK/BUY/HK$8.14/Target: HK$11.08): 1H22: Results above expectations. Sinopharm Group (1099 HK/SELL/HK$17.72/Target: HK$15.00): 1H22: Earnings up 3.1% yoy, lower than expected. INDONESIA Update A...
02328 PICC PROPERTY & CASUALTY CO. LTD. CLASS H
ADHI ADHI KARYA PERSERO
1295 PUBLIC BANK BHD
X2S SINOPHARM GROUP CO. LTD. CLASS H
603288 FOSHAN HAITIAN FLAVOURING & FOOD CO. LTD. CLASS A
RHBBANK RHB BANK BHD
MYEG MY EG SERVICES BHD
TDC TIME DOTCOM BHD
1888 KINGBOARD LAMINATES HOLDINGS LTD
- Selvi Ocktaviani
Adhi Karya (ADHI IJ) - 5M22 New Contract Achievement Doubled
ADHI’s new contract achievement grew 100% to Rp9.9t. ADHI issued new bonds with a competitive 9% coupon rate lower by 25bp which still got oversubscribed. Tight cash flow won’t be an issue for ADHI this year as: a) it looks to receive payment of ~Rp5t from two flagship projects, and b) it might receive state capital injection of Rp2t followed by a rights issue. The downside of the rights issue is that it could risk up to a 51% dilution to minority shareholders. Maintain HOLD. Target price: Rp775...
- Maskun Ramli
- Selvi Ocktaviani
- Jessie Guo Yuting
- Jieqi Liu
- Jonathan Koh
- Ken Lee
- Kong Ho Meng
- Kwanchai Atiphophai
- Selvi Ocktaviani
- Ziv Ang Sze Champ
Regional Morning Notes - Friday, June 24, 2022
GREATER CHINA Sector Automobile: Weekly: The state reiterates support for EV industry. Maintain OVERWEIGHT. Top picks: BYD, GWM, Zhongsheng and Minth. Property: SOE players will continue to outperform in a gradually recovering market. INDONESIA Update Adhi Karya (ADHI IJ/HOLD/Rp790/Target: Rp775): 5M22 new contract achievement doubled. MALAYSIA Results Yinson (YNS MK/BUY/RM2.11/Target: RM3.05): 1QFY23: Core profit deemed in line, assuming cost inflation may impact future margins. FPSO bidbook ...
- Selvi Ocktaviani
Construction – Recovery And Growth In The Midst Of Inflation And Risin...
Investor withdrawal from IKN funding, risk of inflation and interest rate hikes might become new challenges and concerns for the sector. New contract achievements in 2M22 mostly doubled, signalling that infrastructure projects are starting to resume. Recovery in utilisation rate will translate to a higher burn rate and revenue, but the bottom line might remain depressed. Downgrade to MARKET WEIGHT. Keep WIKA and PTPP as our top picks.
- Maskun Ramli
- Selvi Ocktaviani
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