Analisa Saham WIKA dan WSKT

Analisa Saham WIKA dan WSKT

ID - [ Construction]: Infrastructure’s Back; Top Picks: WSKT, WIKA

Andrey Wijaya, Mutiara Nita - RHB Sekuritas

OVERWEIGHT on construction, with BUYs on Waskita Karya (WSKT), Wijaya Karya (WIKA), PP Persero (PTPP), and Adhi Karya (ADHI).

We see positive structural changes in the industry on: 

i) the upcoming establishment of state-owned construction holding firms that should boost operating leverage and reduce financing costs, 

ii) an improving cash flow outlook (better receivables collection) post completion of major turnkey projects, 

iii) and a huge orderbook pipeline from the Government’s infrastructure roadmap. 

Valuations look attractive at 7-10x 2019F P/E at -1/-2SD below mean.