reports
- 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
- Adrian Loh Tzum Yung
- Ariel Poh Yun Li
- Chaiwat Arsirawichai
- Jacquelyn Yow Hui Li
- Johnny Yum Chung Man
- Leow Huey Chuen
- Llelleythan Tan Tan
- Malaysia Research Team
- Selvi Ocktaviani
- Waritthorn Kaewmuang
Regional Morning Notes - Tuesday, November 15, 2022
GREATER CHINA Update Semk Holdings International (2250 HK/BUY/HK$1.36/Target: HK$1.63): Worst of lockdown impacts behind us, growth to resume from 2023. INDONESIA Results Wijaya Karya (WIKA IJ/HOLD/Rp930/Target: Rp850): 3Q22: Improving operational performance despite booking net loss. MALAYSIA Results Swift Haulage (SWIFT MK/BUY/RM0.51/Target: RM0.90): 3Q22: Results in line; expecting major transport rate revision in 2H22 to offset cost increase and potential freight forwarding weakness. SING...
FR FIRST INDUSTRIAL REALTY TRUST INC.
U96 SEMBCORP INDUSTRIES LTD.
B8O YANGZIJIANG SHIPBUILDING (HOLDINGS) LTD.
C52 COMFORTDELGRO CORPORATION LIMITED
WIKA WIJAYA KARYA PERSERO
HANA HANA MICROELECTRONICS PCL
TRUE TRUE CORP. PUBLIC CO. LTD.
CK CH. KARNCHANG PUBLIC CO LTD
SWIFT SWIFT HAULAGE BHD
2250 SEMK HOLDINGS INTERNATIONAL LTD
- Selvi Ocktaviani
Wijaya Karya (WIKA IJ) - 3Q22: Improving Operational Performance Despi...
When the 2Q22 results came out as a net loss, we thought a slow recovery from the pandemic and high material prices pressuring the gross profit were the main issues. However, we realised that WIKA was facing more structural problems, with HSR cost overrun and slow payment from customers leading to tight cash flow. Management has become more selective on project execution and is raising more debt. Downgrade to HOLD. Target price: Rp850.
- 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
- Adrian Loh Tzum Yung
- Ariel Poh Yun Li
- Jieqi Liu
- Jonathan Koh
- Philip Wong
- Selvi Ocktaviani
- Waritthorn Kaewmuang
Regional Morning Notes - Tuesday, September 06, 2022
GREATER CHINA Sector Property: 2022 interim results wrap-up: Deleverage is yet to complete. INDONESIA Update Wijaya Karya (WIKA IJ/BUY/Rp1,070/Target: Rp1,200): New capital city contracts to offset weak 2Q22 results. MALAYSIA Update Duopharma Biotech (DBB MK/BUY/RM1.24/Target: RM2.05): 2H22 earnings should offer fairly decent growth. Duopharma continues to offer bargain valuations. Maintain BUY and target price of RM2.05. SINGAPORE Update Mapletree Logistics Trust (MLT SP/BUY/S$1.70/Target: S...
- Maskun Ramli
- Selvi Ocktaviani
- Selvi Ocktaviani
Wijaya Karya (WIKA IJ) - New Capital City Contracts To Offset Weak 2Q2...
Despite booking a Rp15b loss in 2Q22, WIKA’s share price has risen 7% since its results were released. We foresee a good 2022-23 performance based on: a) Rp900b new contracts for new capital city projects, b) a 23% yoy growth in new contracts in 7M22, c) potential compensation for inflated raw material costs, d) management’s focus on ensuring that its projects receive payment, e) government support on HSR cost overrun, and f) higher 2H22 burn rate. Maintain BUY. Target price: Rp1,200.
- Carolyn Ching
- Chun Sung Oong
- Hazmy Hazin
- Julia Pan Mengyao
- Selvi Ocktaviani
- Tham Mun Hon
Regional Morning Notes - Tuesday, July 12, 2022
GREATER CHINA Economics Money Supply: Credit growth strengthens on stimulus measures, but demand recovery to remain patchy from zero-COVID policy. Update JD.com (9618 HK/BUY/HK$235.00/Target: HK$272.00): 2Q22 results preview: Flat growth in top-line; improved operating efficiency. INDONESIA Results Wijaya Karya (WIKA IJ/BUY/Rp905/Target: Rp1,200): 1Q22: Gross profit margin maintained at 11.3%, back to pre-pandemic level. MALAYSIA Sector Construction: Bumpy recovery in 2H22 pressured by inflati...
- Selvi Ocktaviani
Wijaya Karya (WIKA IJ) - 1Q22: Gross Profit Margin Maintained at 11.3%...
WIKA’s operational margin was well maintained with gross margin and operating margin growing 450bp yoy and 230bp yoy respectively. Net profit dropped to Rp1.3b due to a much weaker recovery in impairment and JO profit contribution. WIKA booked Rp12.5t of new contracts in 5M22, up 57.6% yoy. In tandem with economic recovery, we expect WIKA to book a higher burn rate, which will be reflected in increased revenue. Maintain BUY with a lower target price of Rp1,200.
- Maskun Ramli
- Selvi Ocktaviani
- 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
- Carol Dou Xiao Qin
- Jacquelyn Yow Hui Li
- Jie Ying Chloe Tan
- Ken Lee
- Leow Huey Chuen
- Llelleythan Tan Tan
- Peerawat Dentananan
- Philip Wong
- Selvi Ocktaviani
- Sunny Chen
Regional Morning Notes - Friday, March 18, 2022
REGIONAL Sector Plantation: Demolishment of DMO and increase in CPO export levy structure. Negative impact on Indonesian upstream players. GREATER CHINA Results Shanghai Henlius Biotech Inc (2696 HK/BUY/HK$19.28/Target: HK$30.00): 2021: Revenue up 186% yoy; targets further expansion of 70% yoy in 2022. Zhongsheng Group Holdings (881 HK/BUY/HK$51.65/Target: HK$100.00): 2H21: Net profit up 42% yoy, beating estimates; maintain BUY. INDONESIA Update Wijaya Karya (WIKA IJ/BUY/Rp1,005/Target: Rp1,50...
- Selvi Ocktaviani
Wijaya Karya (WIKA IJ) - New Contracts Doubled In 2M21 And Utilisation...
WIKA started 2022 with an exciting achievement of 128.5% new contract growth in 2M22. Operational performance continued to improve in 4Q21, with gross margin returning back to the pre-pandemic level, and operating profit rising 123.8% qoq and 44% yoy. Utilisation rate has recovered to 80-90%, only slightly below its maximum capacity. Management is optimistic on recovery going forward and has set a 78% yoy revenue growth target for 2022. Maintain BUY with a lower target price of Rp1,500.
- Jacquelyn Yow Hui Li
- Leow Huey Chuen
- Maskun Ramli
- Selvi Ocktaviani
Indonesia Daily - Friday, March 18, 2022
Regional Plantation: Demolishment of DMO and increase in CPO export levy structure. Negative impact on Indonesian upstream players. Wijaya Karya (WIKA IJ/BUY/Rp1,005/Target: Rp1,500): New contracts doubled in 2M21 and utilisation rate recovered to 90%. TRADERS’ CORNER Sarana Menara Nusantara (TOWR IJ): Technical BUY Jasa Marga (JSMR IJ): Technical BUY
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