Saham Pilihan Hari Ini, 15 Agustus 2016 (Maybank)
Indonesia Construction
Pandu Anugrah maintains positive view on Indonesia constructions.He sees that 2016 has been busy year for SOE contractors with aggregate new orders likely to breach another record of IDR150t, up 56% YoY.
1H16 progress in toll roads should carry on in 2H16, with focus will soon turn to 2017, which in Pandu views would remain exciting.
1H16 aggregate new contracts approached IDR90t, up 117% YoY. This was spearheaded by WSKT (+361% YoY) and WIKA (+108% YoY), mainly from toll roads, the Palembang LRT and electricity-transmission projects.
Pandu believes that ADHI and PTPP will catch up in 2H16, via the Greater Jakarta LRT project and power plants. 2H16 should further be supported by a slew of government infrastructure projects, fund-raising and clarity on landmark projects such as the LRT and high-speed rail. Reflecting this, his IDR150t target for new contracts, up 57% YoY, is intact.
Pandu roll forward based valuations and TPs for PTPP and WIKA while upgrading WIKA to BUY from HOLD on the back of its order-book momentum.
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