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.
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