Adhi Karya (ADHI) 3Q18 review: In-line results, but increasing risks call for caution by Giovanni Dustin (giovanni@miraeasset.co.id)
- ADHI 3Q18 revenue: IDR3.3tr (+14% QoQ, -5% YoY), EBIT was IDR471bn (+46% QoQ, +40% YoY), net profit: IDR123bn (-12% QoQ, +67% YoY).
- Sluggish new contract achievement - As of 9M18, ADHI has booked IDR11.4tr worth of new contracts (+11% YoY), translating to 58%/49% against full-year estimates (ours and ADHI’s, respectively); below its three-year historical range of 66%.
- Maintain Hold with lower TP of IDR1,200 - ADHI’s 3Q18 results met our expectations. However, we remain cautious due to ADHI’s high leverage level and lagging payments from KAI.
(See: https://goo.gl/ShiYCu)
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