FR CGS-CIMB (YU) : Waskita Karya
NDR takeaways: lower growth, focus on deleveraging
WSKT IJ / WSKT.JK | ADD - Maintained | Rp1,725.00 tp:Rp3,000.00▼
Mkt.Cap:US$1,579.00m | Avg.Daily Vol:US$4.13m | Free Float:34.00%
Construction
Author(s):Aurelia BARUS +62 (21) 3006 1721, Namira LAHUDDIN
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■ The new CFOs of WSKT (Mr Haris Gunawan) and WSBP (Mr Antonius Nugroho) met with 16 investors during our NDR in Singapore and Kuala Lumpur on 4-7 Sep 2018.
■ The company continues to target moderate long-term net profit CAGR of 10-15% in FY17-22F, supported by a total of 11 toll road divestments in FY18-22F.
■ In FY18F, WSKT’s focus is to improve operating cash flow (OCF) and lower gearing, with an eye to lower FY19F debt-to-equity ratio below 2x via toll road divestments.
■ The divestment of 3 toll roads in FY19F would generate proceeds of Rp8tr-9tr (at 1.5-1.7x BV), based on our estimates, and could provide upside to our FY19F net profit.
■ We cut our FY18-20F EPS forecasts by 2.4-19.3%. We maintain an Add rating, but lower our SOP-based target price to Rp3,000 (implying 12.5x FY19F P/E).
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