Mirae Asset Sekuritas Indonesia on WSKT – Short-term relief, long-term risks by Giovanni Dustin (giovanni@miraeasset.co.id)
- Cash payment from LRT Palembang provides short-term relief… - WSKT recently received IDR3.9tr from LRT Palembang. So far in 2018, WSKT has only received IDR4.5tr in CPF/turnkey payments, forming 23% of its 2018 target (IDR20tr).
- …but long-term risks linger - We continue to believe that WSKT’s huge exposure to CPF/turnkey projects poses risks for the company. Thus, we continue to see a possibility of slower new contract growth for WSKT going forward.
- Large order book remains a buffer (for now) - While we believe WSKT’s large order book serves as a buffer against the potential risk of slower new contract achievement, a plunge in new contract achievement could still derail its long-term growth trajectory.
- Maintain Hold with lower TP of IDR1,650 - Deleveraging through successful capital recycling programs (preferably toll road divestments) could serve as a key re-rating catalyst. (Ilustrasi selengkapnya dapat dibaca https://goo.gl/drMeU5)
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