Archive Tag:PTPP

PTPP: Shining Under the Radar

 Pembagunan Perumahan (PTPP) has received relatively less attention
lately without any high profile projects such as the LRT and HST. But their
performance have done much of the talking with the second highest new
contract achievement at Rp21tn as of 11M15 and an earnings growth of
+30% YoY in 9M15.

 Constructing a solid base for 2016. PTPP is on track to meet their FY15 new
contract target and their 9M15 results showed the market confidence as
construction margin was maintained above 10% while EPC and property
margins expanded strongly on a quarterly basis. With a strong track record and
healthy orderbook size of c.Rp59tn, we believe the company will continue to
deliver strong results.

 Asset revaluation as a contingency plan. Unlike WIKA, PTPP does not have the
luxury to issue rights if the government equity injection (PMN) is cancelled
because the government ownership cannot be further diluted than 51%. Given
their relatively high net gearing of 0.7x, we believe PTPP is taking this
opportunity to utilize the new asset revaluation policy in the case of PMN
cancellation. They plan to revalue assets up Rp1.1tn (equates to a sizeable 25%
increase in their FY16F equity) which will improve solvency ratios that are
particularly important for bond issuances. Assuming they finish executing in
1H16, they will fall under the 4% tax bracket and incur an additional c.Rp44bn in
taxes. Overall we support the plan as the PMN decision is currently clouded by
political uncertainties in the parliament. In any case, we believe the Rp31tn new
contract target should not be affected regardless of the PMN as they will
increase borrowings accordingly.

 Expect smaller contribution from private sector. The company recognizes
that the private segment is facing tough times with property developers
delaying construction due to weak sales, especially on the higher-end side. In
light of this, they reduce the new contract allocation from the private sector to
30% in 2016 from 43% in 2015. We like this move although we also realize that
they will have to increase their construction segment revenue by a larger
amount since gross margin from the property business is c.3x that of
conventional construction works.

 We maintain our Buy call with a new TP of Rp4,560 as we make changes to
our forecast and roll over our valuation to end-2016. This implies a 20x P/E2017F,
equal to +1s.d. from their historical mean which we believe is justified in an
infrastructure-focused period.

PTPP sets 2016 target and creates new Energy subsidiary

For 2016, the company sets Rp35tn (+30% YoY) of new contracts, Rp20tn (+30% YoY) of revenue, and Rp1tn (+37% YoY) of
net income. As of November, their new contracts have reached Rp21tn from the targeted Rp27tn. Additionally, PTPP currently
operates a total of 90MW power plants with assets worth up to Rp600bn. They are in the tendering process for a 2x200MW
power plant in West Kalimantan.

PTPP: On a Solid Footing

On a Solid Footing
A safer bet. We maintain our BUY call on PTPP with TP of
Rp4,650. We like PTPP due to its strong balance sheet and
healthy cash flow which should enable the company to take
up more projects in the future. Unlike most of its SOE peers,
PTPP does not invest in high-risk, capital-intensive projects.
Although the company is planning to invest in more power
plants in the coming years, it intends to acquire only a minority
stake, hence limiting its exposure to the risk of start-up losses.
Revenue visibility remains the strongest among peers with
backlog of Rp41tn. PTPP won Rp21tn new contracts in
11M15, bringing the new contract realisation to 78% of
our/management’s target for FY15. This makes PTPP the
runner-up after WSKT in terms of new contract achievement
YTD. As of Nov 30, PTPP had Rp41tn contract backlog (2.7x
FY15F revenue), which is one of the highest among peers.
Healthy cash flow trend. We like PTPP due to its excellent cash
flow management and earnings quality. Among its peers, PTPP
is the only company which managed to keep its operating cash
flow positive in the last four years. A key reason is its more
diversified customer base compared to other SOEs, with the
private sector contributing 50-60% to PTPP’s order book. This
leads to a lower prepaid tax.
Our revised TP is pegged to 25x FY16 EPS, which is equal to
+2SD of 5-year mean forward PE. We believe PTPP deserves to
trade at a high valuation due to its strong track record and
strong EPS growth potential (29% CAGR from FY15F-17F).
Key Risks to Our View:
Prolonged slowdown in property sector. PTPP has both direct
and indirect exposure to property sector. A prolonged
slowdown in the economy and demand for property can
negatively impact earnings and cash flows.

Sector Update: Construction – 11M15 New Contracts

Based on recent news and our channel checks, total new contracts as of November came up to IDR78.0trn (+47.1%YoY) – 72.7% of the companies’ FY targets or 80.2% of our estimate. We are still optimistic about all SOEs meeting our estimate, given that Dec 2014 contributed 23.9% of that whole year. On top of that, Waskita Karya remains in top place, achieving IDR27.9trn (77.7%YoY) or ~93.0% of its FY estimate.
11M15 achievement. Total new contracts as of 11M15 came up to IDR78.0trn (+47.1%YoY), accounting for 72.7% of the companies’ FY targets, or 80.2% of our own estimate. On a MoM basis, all state-owned contractors booked only an IDR4.7trn increase (-65.5% MoM; -21.9% YoY), the slowest in the past three months. However, if we were to look to 2014, we remain optimistic that all state-owned enterprises (SOEs) could meet our estimate, given that their December achievement made up 23.9% of the contracts for that year.
Waskita is still the winner. Waskita Karya Persero (WSKT IJ, BUY, TP: IDR2,130) delivered superior performance vs its peers. Waskita successfully raked in IDR27.9trn new contracts, or 93% of their total target of IDR30trn. Therefore, we are confident of their FY achievement meeting or potentially exceeding our estimate. Waskita is also set to begin their physical construction of the Palembang Light Rail Train (LRT) in January 2016, a project worth IDR7trn. The company is already preparing the technical construction and budgeting. The LRT project will be recorded as a new contract in 2016, and their new contracts target for next year is IDR40trn (+33.3%YoY).
Confident as to PTPP and Adhi Karya. Pembangunan Perumahan Persero (PTPP IJ, BUY, TP: IDR4,290) recorded around IDR20.0trn in new contracts (+25.8% YoY) as of 11M15, ~74.1% of our and its own FY estimate. Adhi Karya Persero (ADHI IJ, BUY, TP: IDR2,740), meanwhile, booked IDR11.1trn in new contracts, or 74.2% and 59.4% of our and the company’s respective FY expectations. We believe both companies could reach our FY estimate, as there is a potential big chunk of new contracts in December. Moreover, 30% of Adhi Karya’s FY14 new contracts was booked in that December alone.
Wika’s current achievement. Wijaya Karya (WIKA IJ, NEUTRAL, TP: IDR2,815) bagged IDR19.0trn (+25.6%YoY) worth of new contracts in 11M15 – only 60.1% of their IDR31.6trn guidance – but we anticipate the company meeting our FY estimate of IDR25.3trn, as 11M15 new contracts obtained already account for 75.2%. Furthermore, Wika is confident about winning the bid for the 2×1,000MW Java V power plant project tender this month, which could contribute IDR8trn-10trn of new contracts.
Maintain OVERWEIGHT. We are still OVERWEIGHT on the sector, given a better outlook and expectations of robust growth in 2016, with Waskita and PTPP remaining our Top Picks. The sector is currently trading at 20.5x FY16F P/E, the same as the regional valuation.

Construction: 11M15 New Contracts

Based on recent news and our channel checks, total new contracts as of November came up to IDR78.0trn (+47.1%YoY) – 72.7% of the companies’ FY targets or 80.2% of our estimate. We are still optimistic about all SOEs meeting our estimate, given that Dec 2014 contributed 23.9% of that whole year. On top of that, Waskita Karya remains in top place, achieving IDR27.9trn (77.7%YoY) or ~93.0% of its FY estimate.
¨ 11M15 achievement. Total new contracts as of 11M15 came up to IDR78.0trn (+47.1%YoY), accounting for 72.7% of the companies’ FY targets, or 80.2% of our own estimate. On a MoM basis, all state-owned contractors booked only an IDR4.7trn increase (-65.5% MoM; -21.9% YoY), the slowest in the past three months. However, if we were to look to 2014, we remain optimistic that all state-owned enterprises (SOEs) could meet our estimate, given that their December achievement made up 23.9% of the contracts for that year.
¨ Waskita is still the winner. Waskita Karya Persero (WSKT IJ, BUY, TP: IDR2,130) delivered superior performance vs its peers. Waskita successfully raked in IDR27.9trn new contracts, or 93% of their total target of IDR30trn. Therefore, we are confident of their FY achievement meeting or potentially exceeding our estimate. Waskita is also set to begin their physical construction of the Palembang Light Rail Train (LRT) in January 2016, a project worth IDR7trn. The company is already preparing the technical construction and budgeting. The LRT project will be recorded as a new contract in 2016, and their new contracts target for next year is IDR40trn (+33.3%YoY).
¨ Confident as to PTPP and Adhi Karya. Pembangunan Perumahan Persero (PTPP IJ, BUY, TP: IDR4,290) recorded around IDR20.0trn in new contracts (+25.8% YoY) as of 11M15, ~74.1% of our and its own FY estimate. Adhi Karya Persero (ADHI IJ, BUY, TP: IDR2,740), meanwhile, booked IDR11.1trn in new contracts, or 74.2% and 59.4% of our and the company’s respective FY expectations. We believe both companies could reach our FY estimate, as there is a potential big chunk of new contracts in December. Moreover, 30% of Adhi Karya’s FY14 new contracts was booked in that December alone.
¨ Wika’s current achievement. Wijaya Karya (WIKA IJ, NEUTRAL, TP: IDR2,815) bagged IDR19.0trn (+25.6%YoY) worth of new contracts in 11M15 – only 60.1% of their IDR31.6trn guidance – but we anticipate the company meeting our FY estimate of IDR25.3trn, as 11M15 new contracts obtained already account for 75.2%. Furthermore, Wika is confident about winning the bid for the 2×1,000MW Java V power plant project tender this month, which could contribute IDR8trn-10trn of new contracts.
¨ Maintain OVERWEIGHT. We are still OVERWEIGHT on the sector, given a better outlook and expectations of robust growth in 2016, with Waskita and PTPP remaining our Top Picks. The sector is currently trading at 20.5x FY16F P/E, the same as the regional valuation.

Indonesia Construction – YTD round up: Well equipped for growth

· Maintain OVERWEIGHT as YTD achievement remains on course with our target. Preliminary 3Q15 earnings of SOE contractors continue to show strong positive momentum (+39% QoQ, +57% YoY) with quarterly margin expansion to 12% from 11.5% in 2Q15.

· 2015 new contract growth likely to top 40% YoY, with contribution to come mostly from SOE companies and self-generated projects.

· Good progress on land acquisition as realization on allocated budget hit 93%. Tender process on 2016 project has started.

· BUY on WSKT, PTPP, and ADHI with strongest backlog growth.

PTPP revised down its revenue target to IDR15,6trn (25.5% YoY) from initial target of IDR19.2trn (54.4% YoY)

Pembangunan Perumahan (PTPP) revised down its revenue target to IDR15,6trn (25.5% YoY) from initial target of IDR19.2trn (54.4% YoY). Our revenue estimate is around IDR16.5trn (+33.2% YoY), around six percent higher than company’s new target of IDR15.6trn (25.5%YoY). Supported by its property business, private projects and plenty of government projects ahead, PTPP’s order book is set to grow by 29% CAGR between FY14 and FY17F.
We expect the company to post 33.2% and 33.0% revenue growth in FY15F and FY16F respectively, boosting its topline to IDR16.6trn and IDR22trn in FY15F and FY16F respectively from IDR12.4trn in FY14. Its performance is also backed by its expertise in port development. Previously, the contractor won a Kalibaru Port project in New Priok and New Makassar Port. We are still confident that the company would achieve our estimate since many projects start in 4Q15. Therefore, we still maintain our recommendation on PTPP with a BUY and TP of IDR4,290. Furthermore, as of October, the company has recorded IDR18.6trn, accounted for 68.8% of new contract target of IDR27trn.

PTPP: Kalibaru visit: CT1 to be operational in mid-2016

Kalibaru channel check
We visited the New Priok (Kalibaru) port phase I to see the latest progress on
the ground. We saw that the project is nearly complete, with the first container
terminal (CT1) to be inaugurated by President Jokowi by the year-end and start
full commissioning by mid-2016.
First deep-sea water port in Indonesia to be operational in mid-2016
The Kalibaru port will be the largest and the first deep-sea water port in
Indonesia with 16m drafts. In the pipeline, Pelindo II (IPC) is developing the
Kalibaru port with planned total capacity of 13m TEUs in a US$2bn project to
be developed in three phases. When the whole project is completed, Jakarta’s
Tanjung Priok port will increase its annual capacity from the current 5m TEUs
to 18m TEUs and will be able to facilitate triple-E class container ships (~18k
TEUs). In 2014, Pelindo II appointed Mitsui Co. as the operator for CT1.
PTPP still the major beneficiary from this project
PTPP won the tender for the Kalibaru project phase I worth Rp9.0tr in late-
2012, making it one of the largest single infrastructure projects ever given to
the SOE contractor. PTPP’s scope of work in the project is mainly related to the
construction of the access road, land reclamation, and development of CT1.
Over the past three years, this project has contributed c.12-16% of PTPP’s
construction revenues, making IPC the biggest revenue contributor for PTPP.
At the moment, PTPP still has a backlog of c.Rp4tr from this project (10% of
total backlog) that will be fully delivered in mid-2017.
Maintaining Buy
The good progress from PTPP as the main contractor in the project will pave
the way for its strong reputation as one of the experts in port projects. Thus,
we keep our positive outlook on the company and maintain our Buy call.
(Detailed valuation and risk section on page 4)

Sector Initiation: Construction – Connecting The Nation

We re-initiate coverage on Indonesia’s construction sector with an OVERWEIGHT. Our call is based on: i) the current progress in an industry showing good signs of capital spending disbursements, ii) a better 2016 outlook on normalised budget approvals and improved ministries’ administration, and iii) better regulations to support the ramping up of infrastructure projects.
¨ Progress shows signs of acceleration. Capital spending realisation up to October, including those for infrastructure projects, has shown signs of improvement. YTD Oct-15, the Government has spent IDR108trn (+51.4% YoY), higher than it did over the same period in 2013 and 2014, ie IDR87trn in 10M13 and IDR71trn in 10M14. On a YoY basis, the Government disbursed more than double what it spent in Oct-14 and Oct-13. In October alone, the Jokowi administration has spent IDR31trn vs IDR12trn-15trn in the same month in 2013 and 2014. This is the fastest pace of infrastructure spending we have seen from the Government in recent years.
¨ Better 2016 outlook ahead. We opine for a more attractive construction sector in FY16. This is because the progress of infrastructure development would potentially be accelerated in 2H16. This is on: i) administration issues at ministries having been sorted out, ii) a normal budget approval process, iii) early tendering of FY16 projects, iv) faster land acquisition progress given the new land bill that focuses on the timetable of the land clearing process, v) better legal protection for local governments to execute infrastructure projects as well as bigger infrastructure spending budgets, and vi) a low debt to GDP ratio, which provides room for the Government to fund projects.
¨ Risks. Bureaucracy and the land acquisition process remains the biggest issue. This is because the process requires the involvement of local governments. In addition, the 3% budget deficit limit could make the Government cut infrastructure spending if its revenue shortfall is higher than expected.
¨ OVERWEIGHT. We resume coverage on Adhi Karya Persero (Adhi Karya) (ADHI IJ, BUY, TP: IDR2,740), Wijaya Karya Persero (Wijaya Karya) (WIKA IJ, NEUTRAL, TP: IDR2,815), Wijaya Karya Beton (Wika Beton) (WTON IJ, NEUTRAL, TP: IDR910) and Pembangunan Perumahan Persero (Pembangunan Perumahan) (PTPP IJ, BUY, TP: IDR4,290). We also initiate coverage on Waskita Karya Persero (Waskita Karya) (WSKT IJ, BUY, TP: IDR2,130) and Acset Indonusa (Acset) (ACST IJ, BUY, TP: IDR4,710). Our top picks are Waskita Karya since the company has the strongest earnings growth and PTPP because it has exposure to both private and government projects and hence more resilient earnings.

PP Properti Bidik Penjualan Properti Rp 2 Triliun

PT PP Properti Tbk (PPRO) mengincar marketing sales Rp 2 triliun hingga akhir tahun ini, naik 58% dibandingkan realisasi pada tahun lalu Rp 1,3 triliun.

Hal ini didukung oleh positifnya hasil pemasaran dalam sembilan bulan terakhir. Hingga kuartal III-2015, pendapatan prapenjualan (marketing sales) perseroan mencapai Rp 1,2 triliun, atau naik 45% secara year-on-year. Pada tahun depan, marketing sales ditargetkan Rp 2,6 triliun.

Emiten berkode saham PPRO ini juga memproyeksikan laba bersih pada tahun ini menyentuh Rp 302 miliar, melonjak 185% dibandingkan dengan tahun lalu Rp 106 miliar.

“Peningkatan drastis laba bersih kami tidak lepas dari keberhasilan penjualan produk-produk berkualitas kami yang diterima dengan baik oleh konsumen,” kata Direktur Utama PP Properti, Taufik Hidayat, di acara Investor Summit, Jakarta, Selasa (10/11/2015).

Pendapatan perseroan ditopang oleh penjualan apartemen khususnya di Grand Kamala Lagoon dan Grand Sungkono Lagoon, yang merupakan dua proyek utama dari 11 mega proyek yang tengah dikembangkan PPRO.

Emiten properti yang melantai di Bursa Efek Indonesia (BEI) pada Mei 2015 ini fokus mengembangkan proyek yang terbagi atas tiga segmen portofolio, yakni mulai dari residensial, komersial, dan hospitality.

Sementara pendapatan perseroan ditopang oleh tiga segmen. Segmen pertama adalah developer, di mana PPRO saat ini tengah mengembangkan 8 proyek yang dapat memberikan kontribusi prapenjualan perseroan.

Dia menjelaskan superblok Grand Kamala Lagoon yang berlokasi di Bekasi dan dibangun di atas lahan seluas 28.2 hektare dan Grand Sungkono Lagoon, Surabaya seluas 3,5 hektare merupakan proyek andalan perseroan di segmen developer.

Superblok Grand Kamala Lagoon (GKL) merupakan landmark project PP Properti saat ini dan diperkirakan akan berkontribusi Rp 100 triliun hingga tahun 2035 mendatang, sekaligus penyokong utama kinerja perseroan.

PP Properti telah meluncurkan dua tower apartemen di Grand Kamala Lagoon yakni Tower Emerald dan Tower Barclay. Tower Emerald akan dibangun setinggi 44 lantai dan menampung 1.688 unit apartemen.

“Tower tersebut dibangun pada tahun lalu dan sejak pertama kali diperkenalkan kepada pasar telah ludes terjual (sold out) pada awal tahun ini,” paparnya.

Tower Barclay Grand Kamala Lagoon merupakan menara kedua dan juga akan dibangun setinggi 44 lantai sehingga mampu menampung 2.028 unit apartemen dan mulai dipasarkan pada awal tahun ini. Tower ini telah terjual 45%.

PPRO juga membangun Kamala Bridge, jembatan yang membentang di atas jalan tol Cikampek sebagai landmark yang langsung menghubungkan akses utama menuju kawasan proyek.

Taufik menambahkan proyek dengan kontribusi terbesar kedua adalah superblok Grand Sungkono Lagoon, Surabaya yang di proyeksikan mengumpulkan pendapatan hingga Rp 8 triliun.

Tower pertama di proyek ini, yaitu The Venetian, memiliki 508 unit apartemen dan telah habis terserap. Sementara itu, tower kedua The Caspian terdiri dari 560 unit apartemen.

Sedangkan Grand Dharmahusada Lagoon, Surabaya adalah kawasan mixed used yang terletak di daerah strategis di Surabaya berdekatan dengan Universitas Airlangga dan ITS, Rumah Sakit Haji Surabaya dan pusat perbelanjaan Galaxy Mall. Kawasan yang menempati area seluas 4,2 ha tersebut ditargetkan meraup pendapatan sebesar Rp 10 triliun.

Sementara itu, di segmen properti, kontribusi prapenjualan dikontribusikan oleh Mall KAZA City, Park Hotel, dan produk properti lainnya.

Sedangkan di segmen KSO-Developer, PPRO menjalin kerja sama operasi (joint operation) dengan mitra strategis untuk pengembangan sejumlah proyek, antara lain Apartemen Paladian Park, Kelapa Gading.


​PT PP (Persero) tengah mengerjakan sejumlah proyek properti yang terdapat di pulau Jawa. 

Berdasarkan bahan presentasi PTPP kepada publik yang dikutip Rabu (4/11), anak usahanya yakni PT PP Properti sedang membangun Grand Sungkono Lagoon Surabaya dengan luas area sekitar 3,5 hektar dan target pendapatan dari proyek ini sekitar Rp8 triliun.

Payon Amarta Semarang yang berdiri di lahan seluas 9000 meter persegi. Perumahan ini diperkirakan dapat memberikan pendapatan sebesar Rp339 miliar. 

Selain itu, terdapat Grand Dharmahusada Lagoon di Surabaya. Kawasan superblok ini akan didirikan di lahan kurang lebih 4,2 hektar, dengan perkiraan pendapatannya mencapai Rp9 triliun. 

Di wilayah Jawa Barat, PP Peroperti tengah membangun rumah susun dengan nama Gunung Putri Square di lahan seluas 2 hektar. Adapun total pendapatan dari proyek ini diperkirakan sebesar Rp470 miliar. 

PP Properti juga giat membangun apartemen dengan nama The Ayoma Apartement di lahan seluas 1,1 hektar. Total pendapatan yang dapat diperoleh dari apartemen sekitar Rp1 triliun. 

Pada tahun ini, PTPP memproyeksikan perolehan kontrak baru sebesar Rp27 triliun dan proyek yang dialihkan (carry over) mencapai Rp29,86 triliun. Artinya, total kontraknya mencapai Rp56,87 triliun. 

Hingga periode Januari-September 2015, kontrak baru telah mencapai Rp16,8 triliun. Perolehan kontraknya masih dikuasai oleh proyek swasta yang mencapai 55,99%, BUMN sekitar 29,79%, dan pemerintah 19,22%. 

Bila berdasarkan segmen pekerjaan, proyek bangunan masih mendominasi atau 48,55%. Sementara itu, bisnis konstruksi merupakan penyumbang proyek perseroan atau sekitar 69,64%, EPC sebesar 8%, properti 7,37%, pra cetak 7,14%, investasi 5,13%, dan perlengkapan hanya 0.75%

PTPP: Financial Cost Limits the Bottom Line

 Revenue increased 13.4% to IDR 5.22 trillion and net income climbed
9.3% to IDR 161 billion for 1Q15, thanks to property business
 Until July 2015, PTPP secured IDR 15.1 trillion worth of new contracts,
or 56.1% from its IDR 27 trillion target for the year.
 Due to delays in government projects, we cut PTPP’s revenue target by
9.2% for this year. However, higher profit margins from property
business should support the profit growth
 Upgraded to “Accumulate” and maintained target price of IDR 3,935 for
FY15 based on FY15’s EPS of IDR 110 and WACC of 11.08%.

Once again, private sector is the main contributor
Up to 1H15, PTPP booked IDR 5.22 trillion in revenue, increased by 13.4%
yoy. Construction, as its main business, contributed 6.4% growth, reversing
its negative growth of -20.6% 1Q15. Private sector still dominates PTPP’s
revenue by 70%, increased 21.75%. While revenue from government and
SOE projects declined 2.2% yoy and contributed roughly 30% to its total
Amid slower infrastructure development realization, PTPP’s property
business, through its PP Properti (PPRO), became the biggest growth
driver to the Company. In 1H15, property business contributed 14.2% of
PTPP total revenue, increased significantly from 3.5% in 1H14.
PTPP net income climbed 9.3% yoy to IDR 161 billion. However, higher
financial costs due to higher debt level reduced NPM from 3.2% to 3.1%.
Furthermore, non-controlling interest rose significantly following PPRO IJ’s
IPO which caused net income in 2Q15 to lower by 26.3% on qoq basis.

Thanks to property business
Until July 2015, PTPP secured IDR 15.1 trillion worth of new contracts, or
56.1% from its IDR 27 trillion target for the year. In terms of new contracts
value, PTPP is leading the industry as compared to its peers, followed by
Wijaya Karya (IDR 10.6 trillion), Waskita Karya (IDR 9.9 trillion) and Adhi
Karya (IDR 7 trillion).
Due to delays in government projects, PTPP is leaning more towards the
private projects as a contributor to its revenue growth. Given that the
Ministry of Public Works and Housing’s (“Kemepupera”) spending stood at
26.4% (IDR 31.2 trillion) of their total allocated budget of IDR 118 trillion,
we fear that they would likely miss their spending target.
Based on the rationales above, we cut PTPP’s revenue target to IDR 15.8
trillion from IDR 17.4 trillion for this year. However, higher profit margin
from property business should support the gross profit and operating profit.
Operating profit is estimated to increase 21.6% yoy to IDR 1.53 trillion.
While net income is expected at IDR 597 billion, up 12.3% yoy. NPM is
expected to be lower due to higher financial cost since PTPP already issued
IDR 300 billion worth of bonds and IDR 300 billion MTN into the market.
PTPP also proposed IDR 2 trillion of capital injections in 2016 through rights
issue scheme to fund their infrastructure projects such as power plants,
ports and toll roads. Up to these days, the proposal is waiting for the House
of Representatives (“DPR”)’s approval. If the proposal is approved, PTPP
could raise up to IDR 3.92 trillion.

It’s not cheap, but still attractive…
In our last report dated May 7, 2015, we maintained our “NEUTRAL” rating
due to tight valuation. As share price has dropped significantly, we upgrade
PTPP’s rating to “ACCUMULATE” with unchanged price target of IDR 3,935
for FY15F. We expect FY15F revenue at IDR 15.8 trillion (+27.1% yoy) and
net income at IDR 597 billion (+12.3% yoy)

First Stimulus Package By the Government; More to Follow

-First stimulus package – The government has just unveiled the first stimulus package, which will be followed by another package. Below are details of the package of tax holiday measures announced:
– Tax holidays to be offered to pioneer Industries, including those in upstream metals, oil & gas refineries, basic chemicals, machinery, maritime transport, and agriculture, fishery and forestry product processing.
– Also eligible are processing industries operating in special economic zones and public-private partnerships in infrastructure.
– Telco companies making a minimum investment of Rp500b can apply for a tax holiday.
– To qualify for a tax holiday, investors need to put at least 10% of their investment into the Indonesian banking system.
– Tax holidays can mean 10-100% reductions in the tax rate for 5-15 years.
– Only new (ie, not current) investments are eligible for these concessions.

-Coordination among ministries has improved; infra spending needs to accelerate – We believe the announced measures are a first step in the right direction. Since the first cabinet reshuffle, under the new coordinating ministers (Darmin Nasution, Rizal Ramli and Luhut Panjaitan) and the new cabinet minister, Pramono Anung, coordination among cabinet ministers and with the business community has notably improved. Next, we await presidential initiatives to accelerate spending by regional governments by relaxing budget oversight and giving officials (at mayoral, regency and governor levels) legal protection against graft convictions. Significant amounts of money allocated to regional governments are being parked at regional banks (c. Rp270tr) as regional leaders are wary of spending for fear of triggering corruption allegations.

-Catalysts for the market; Index target of 5,000 by year end – Based on a top-down valuation approach, we have index targets of 5,000 at end-2015 and 5,700 at end-2016. The new tax holiday measures should benefit construction and power plant companies, among them ACST, WIKA, ADHI, WTON, PTPP, NRCA, PTBA, TMAS, SMDR and ADRO. Potential market catalysts include: 1) rebound in earnings in 3Q or 4Q; and 2) smooth and continuing disbursement of government spending (simultaneous direct regional election on Dec 9) which could increase both business and consumer confidence. Downside risks: 1) Earnings remaining weak in 3Q and 4Q; 2) inconsistent/unclear government policies; and; 3) US fed hike or continued CNY devaluation, which could weaken the Indonesian currency.

PTPP: 6M15 results below expectations

 Slightly weaker than expected 2nd quarter. PTPP’s 6M15 NPAT came in at Rp161bn (+9% YoY) comprising of 23% of
ours and consensus estimate. We deem this to be a lower than expected earnings since historically PTPP has managed to
realize 28% of their full year target in the first half of the year.
 Large margin improvements due to its property subsidiary PPRO. PPRO released their financial statements last week
and showed that they are now making a sizeable contribution to PTPP’s books with a bottom line of Rp143bn. We believe
the property segment is the main reason for its margin expansion above the NPAT level and suspect that the construction
segment is dragging the rest down. We will clarify this once the full financials are out.
 Still leading the pack in terms of new contracts. As of July, PTPP acquired Rp15.1tn (+62% YoY) of new contracts which
makes up 56% of their full year target of Rp27tn. There is a sizeable gap to the second closest competitor which is WIKA at
 Maintain BUY at Rp4,200. We still like PTPP due to their strongest new contract performance in the SOE contractor
universe and their plan to receive a government equity injection of around Rp2tn.

PTPP: 2Q15 results: Below on hefty minority interest

§ Depressed bottom line due to 2Q15 minority interest on PPRO IPO: Although PTPP booked in-line 2Q15 sales and operating profit, the PPRO IPO caused PTPP to record 1H15 minority interest of IDR50bn (Bahana 2015E: IDR106bn), which brought PTPP’s 2Q15 net profit to IDR67bn (-28.1% q-q, -21.1% y-y). In 1H15, PTPP’s net profit reached IDR161bn (+9.6% y-y), accounting for 21.6% of our and 22.5% of consensus’ estimates. We note that based on management’s guidance, PTPP’s net profit target remains at IDR730bn (+37.2% y-y), including PPRO’s minority interest.
§ Pick-up in 2Q15 construction sales but with lower margin: On the top line, PTPP booked higher 2Q15 sales of IDR3.2tn (+63.5% q-q, +24.4% y-y), still supported by strong contribution from its property subsidiary, PP Properti (PPRO). PTPP also booked a strong rebound in 2Q15 construction sales to IDR2.8tn (+101% q-q, +28.2% y-y), similar to other state-owned construction companies. However, on weak 2Q15 EPC sales of IDR93bn (-70.8% y-y), we slightly lower our 2015 EPC sales forecast to IDR1.1tn (+5% y-y). In the lead-up to the Lebaran period in July, 2Q15 gross margin fell to 12.5% (2Q14: 17.6%) on lower construction (2Q15: 10.6%. 2Q14: 20.5%) and EPC margins (2Q15: 9.4%, 2Q14: 10.9%). PTPP is now separating revenue of its precast business (2Q15 gross loss: IDR13.6bn).

Outlook: Lowering GPM on weak property market
As the slowdown in the Indonesia economy has resulted in weak marketing sales in the property market, we expect a number of PTPP’s private customers to work together with PTPP to lower project construction costs. Hence, we cut our 2015 construction GPM estimate for PTPP to 11.5% while we maintain our 2015 construction sales forecast of IDR14.4tn (+35% y-y) on the expectation of accelerated budget disbursements for government projects. Meanwhile, as PTPP has already booked 7M15 new contracts of IDR15.1tn (+61.9% y-y), we slightly raise our 2015 new orderbook assumption to IDR26.2tn (+29.6% y-y).

Recommendation: Maintain BUY with lower TP to IDR3,710
At this stage of the cycle, we lower our 2015 blended gross margin assumption to 12.9% (2014: 12.9%), and as a result we cut our 2015-16 EPS forecasts by 9-14%. As we roll over our valuation to 2016, we lower our SOTP-based 12-month TP to IDR3,710 from IDR4,500 (exhibit 7), translating to 2016F PER of 22.2x, around 10% premium to the sector’s target PER. Retain BUY. Risks are lower marketing sales at PPRO and government budget disbursements.

Indonesia Construction – 1H solid, 2H stronger

§ We estimate 2Q15 earnings grew by a seasonally stronger 106% QoQ, but 1H15 likely remained flat at -1% YoY, weighed by WIKA’s weak precast business. Excluding WIKA, we estimate 1H15 earnings grew by a solid 35% YoY.
§ Aggregate 1H15 new contracts of IDR40t (+56% YoY), on track to reach our full-year forecast of IDR81t.
§ Acceleration set to unfold in the following quarters. Top Picks remain PTPP, WSKT and ADHI (for high-beta play).

PTPP: 2Q15 preview; Seasonally stronger

§ Maintain BUY with TP of IDR4,500, pegging the stock at 2016F PER of 23x. PTPP remains one of our top picks.
§ Despite the slow tender process for gov’t projects, the IDR11.8t new contracts (+40% YoY) YTD (up to mid-Jun 2015) are on track to reach our full-year forecast of IDR25t.
§ Expect 2Q15 earnings to grow at least 19% QoQ, bringing 6M15 net profit to IDR250b (+40% YoY), 28% of our full-year forecast. Historical achievement in 6M earnings is around 24%-30%.

Be careful but keep opportunities open

IHSG ditutup pada 4,899.88 (-2.3%) pada perdagangan kemarin (9/6). Kinerja tersebut sudah turun 6.26% ytd. Di tengah-tengah tren penurunan pasar ini, kami mengajak investor untuk meninjau kembali saham-saham yang memiliki fundamental yang baik. Menurut Direktorat Jenderal Perbendaharaan, realisasi belanja pemerintah dari APBN 2015 selama 1 Januari – 31 Maret 2015 adalah hanya 18,5% (vs 15,6% tahun lalu). Meskipun realisasi APBN 1Q15 ini lebih tinggi dari tahun lalu, namun menurut beberapa media berita, penyerapan anggaran infrastruktur sampai 27 April hanya sekitar IDR7tr. Hanya untuk mengingatkan, total budget infrastruktur 2015 adalah sebesar IDR290tr. Oleh karena itu, lambatnya penyerapan menjadi kekecewaan yang besar dan itu juga tercermin pada kinerja laporan keuangan 1Q15 perusahaan-perusahaan konstruksi.

Salah satu listed construction company adalah PT PP (Persero) Tbk – PTPP. Top line financial performance PTPP juga terkena dampak dari lambatnya proyek-proyek konstruksi. PTPP 1Q15 sales turun 0,9% YoY, tapi PTPP masih mampu membukukan pertumbuhan laba bersih yang positif (+52,3%) di IDR93.5bn. PTPP melakukan efisiensi yang baik sehingga HPP turun 5,4% dan menyelamatkan bottom line. Jadi, masalahnya ada di top line. Total order book PTPP sampai minggu ketiga April 2015 sudah mencapai IDR36.6tr (IDR7.6tr kontrak baru dan IDR29tr carry over). Total order book PTPP terus meningkat dan (menurut beberapa laporan media) sudah di c.IDR38.8tr (IDR9.8tr kontrak baru) pada akhir Mei 2015. Proyek-proyek PTPP antara lain Reklamasi Mandala City di Makassar (IDR2.5tr), St.Moritz di Makassar (IDR576bn), One Otium Residence Antasari di Jakarta (IDR472bn), dll dan juga proyek-proyek infrastruktur pemerintah seperti jalan tol Bawen-Solo (IDR339bn), dll.

Kami percaya bahwa pemerintah akan melakukan sesuatu untuk meningkatkan belanja infrastruktur di kuartal-kuartal berikutnya untuk mendongkrak pertumbuhan PDB dan juga kami percaya bahwa PTPP akan mendapatkan keuntungan dari itu.

PPRO: Laba Bersih PP Properti (PPRO) Melonjak 23 Kali Lipat

PT PP Properti Tbk. (PPRO) mengantongi laba bersih pada kuartal I/2015 sebesar Rp80,32 miliar, setara dengan 27,5% dari total target sepanjang tahun Rp292 miliar.

Indrayanto, Direktur Keuangan PP Properti, mengatakan perolehan laba bersih pada kuartal pertama itu melonjak 23 kali lipat bila dibandingkan dengan periode yang sama tahun lalu.

“Lonjakan laba bersih tersebut tidak lepas dari lonjakan pendapatan usaha selama kuartal I/2015 yang tumbuh 12 kali lipat menjadi Rp387,89 miliar dibandingkan dengan tahun lalu Rp14,29 miliar,” ungkapnya dalam keterangan resmi.

PTPP: Kontrak Baru PTPP Hingga Akhir Mei Capai Rp9,8 Triliun

Perusahaan konstruksi dan investasi PT PP (Persero) Tbk meraih kontrak baru sebesar Rp9,8 triliun sampai dengan akhir Mei 2015. Jumlah tersebut diklaim melebihi target yang ditetapkan perusahaan sebesar Rp8,6 triliun.

Bambang Triwibowo Direktur Utama PT PP (Persero) Tbk mengatakan total order book sampai dengan akhir Mei mencapai Rp38,8 triliun termasuk carry over 2014 sebesar Rp29 triliun.

Bambang menyatakan kontrak baru tersebut mencapai 36% dari total target kontrak baru yang ditetapkan perusahaan sepanjang tahun ini, yaitu sebesar Rp27 triliun.

Walaupun pelaksanaan proyek infrastruktur pemerintah mundur dari target semula, kata Bambang, perolehan kontrak baru etap tinggi karena mendapat kepercayaan dari pihak swasta, seperti Lippo Group, CT Group, Alila, dll.

PTPP: 1Q15 new order book highest among SOE contractors

myTake: We continue to expect Infrastructure demand back end loaded in 2H due to Government budget/spending process especially this new Cabinet 1st year. We reiterate SOE Contractors WIKA/PTPP/WSKT as Top-Picks in Indonesia Construction sector. @Rp3,970, PTPP is trading on 27.3x-19.2x 2015F-16F PER, 1.1% 2015F Dividend Yield, and implies 21% Upside to TP Rp4,800, we reiterate PTPP Outperform.

· Rachel Tan / Danny Goh (Daily attached): PTPP recorded Rp6.7 tn in new order book in 1Q15, the highest among SOE contractors. Despite 1Q15 typically being a slow quarter, PTPP was the only contractor which achieved 25% of its full-year target in 1Q15, compared with less than 20% for the rest.

· Management expects PTPP to bag at least two seaport projects this year, with an order book of more than Rp1.4 tn. Apart from seaports, management targets construction works for dams, power plants, and roads.

· The listing of PP Properti is on track—by June 2015. Next on the IPO list is PP Precast. However, management will consider an IPO only after it owns more than six plants. PP Precast currently owns two plants and plans to add one plant per year.

· We revise our FY15–FY16 earnings estimates by 15–19%, by incorporating higher new order book target in FY15. We roll forward our target price (incorporating FY17 estimates) to Rp4,800, from Rp4,067. PTPP trades at FY16 P/E of 19x.

Waiting for the harvest

 Long-term positive on market, but short-term turn NEUTRAL.
Index targets remain: 5,500 (2015-end) and 6,500 (2016-
end). In 2015 market will be stock-picking driven


 Positive on state-budget’s healthier structure, inflation &
interest rates. Short-term risks for GDP-growth & taxrevenue

Robin Hood policies
We reckon one of the government’s economic policy features will
focus more on intensive tax collections due to not only budget
pressure, but also the country’s low tax income/GDP ratio. This
policy should be positive to help lowering the Gini coefficient,
which has been in an upward trend since the last 6-7 years. Massmarket
consumer sector will be the biggest beneficiary.

Structurally healthier economy
The economy is transforming into a better shape, we believe,
thanks to a better reallocation of subsidies and lower oil prices.
Infrastructure, the new growth engine, should easily boost the
economy over 6.0% in medium term, we believe. Low inflation and
welfare programmes should help the purchasing power of the
masses. Staple and small-ticket items should outperform bigger

Top picks
We like companies that sell to the mass market. We also like
infrastructure, healthcare and banking sector. Our top-10 picks are

The government has set too ambitious GDP growth and tax income
targets amid weakening economy which could impact execution of
infrastructure projects.

The market index is at one of the highest levels and does not look cheap at 16x PER

The market index is at one of the highest levels and does not look cheap at 16x PER. Liquidity is perhaps one of the reasons why the markets remain strong because economic fundamentals do not look good in the near term. The economy is in a slowing mode as is show by weak sales in automotive, retail, cement sectors. The government tax income realization is also weak in 1Q15. We understand that 1Q is a weak quarter seasonally but if we look at the YoY sales figures, the numbers are down. That’s why in short-term we are Neutral on the market in with an index target of 5,500.

Long-term wise, remain positive on the market as we believe that the economy is transforming into a better shape partly thanks to a better reallocation of subsidies. Inflation and interest rate we expect to remain low as we don’t expect significant hikes in oil prices. On taxation side, the government will focus on this due to 1) budget pressure, 2) low tax income/GDP ratio and 3) increasing Gini ratio coefficient. Having said that, we like like companies that sell to the mass market. We also like infrastructure, healthcare and banking sector. Our top-10 picks are ADHI, BBRI, BEST, GGRM, INDF, JSMR, KLBF, PTPP, TELE and TLKM.

PTPP: Strong Start

· 1Q15 new contracts reached IDR6.7t (+49% YoY), accounting for 28% of our full-year forecast. While we maintain our full-year target for now, potential upside is on the cards.

· 1Q15 earnings is seasonally the lowest, accounting for 10%-12% of full-year forecast. This translates to an estimated 1Q15 earnings growth of 15% YoY.

· Acceleration sets to unfold in parallel with faster projects delivery in the following quarters.

· Solid backlog project growth should underpin 2015 estimated earnings growth of 37.6% YoY. Maintain BUY with unchanged TP of IDR4,500.

Indonesia Market Strategy – Is this the last downgrade?

● Over half of the companies in our coverage universe have reported their 4Q14 results. The downgrade cycle has continued. The number of consensus downgrades post 4Q results has reached 63% (29% upgrades), higher than 3Q downgrades of 45%.

● Our argument that we have published in the recent report “The Big Bang theory is that 2Q should define the bottom of the economic cycle. It is therefore not surprising that downgrades are running high. Sectors that have borne the brunt are cement, autos and telco services. The largest upgrades were in construction and capital goods. We believe these sectors should be more resilient in the coming quarters.

● With the economy expected to bottom in 2Q, a further potential cut in interest rate in the second half is likely to set the market up for better performance both in earnings and stock prices.

● The play on earnings bottom and a 60% higher infra capex allocated by the government are construction names such as WIKA, WSKT and PTPP, Astra, Semen Indonesia and Summarecon (residential property).

PTPP: Enam Proyek Besar Topang Peningkatan Laba Bersih PTPP

Perusahaan pelat merah bidang konstruksi PT Pembangunan Perumahan Tbk (PTPP) berhasil membukukan laba bersih sebesar Rp 532 miliar sepanjang 2014 lalu, naik 26,47 persen dibandingkan perolehan laba bersih 2013 sebesar Rp 420 miliar.

Naiknya laba bersih perseroan seiring dengan meningkatnya pendapatan yang dikantongi sebesar 6,62 persen menjadi Rp 12,42 triliun dari sebelumnya Rp 11,65 triliun pada 2013.

Taufik Hidayat, Sekretaris Perusahaan PTPP menyatakan realisasi pendapatan dan laba bersih tersebut berasal dari seluruh pilar bisnis perseroan yaitu konstruksi, investasi, EPC, properti, pracetak, dan peralatan.

Namun, Taufik menyebutkan ada enam proyek besar yang menghasilkan keuntungan besar bagi PTPP yaitu:

1. Pembangunan Tol Depok-Antasari senilai Rp 654 miliar,

2. Apartemen Lexington di Jakarta senilai Rp 646 miliar,

3. Proyek Mall dan Apartemen Sawangan di Depok sebesar Rp 605 miliar,

4. Landmark di Bandung senilai Rp 599 miliar,

5. Anabatic Technologies Group dengan nilai Rp 409 miliar, dan

6. Bendungan Pidekso di Jawa Tengah dengan nilai Rp 361 miliar.

Bidik Kontrak Baru

Sementara sepanjang 2015, Taufik menyebut PTPP akan berupaya memperoleh kontrak baru senilai Rp 27 triliun atau 30 persen lebih tinggi dibandingkan perolehan kontrak baru di 2014 sebesar Rp 20,24 triliun. Angka tersebut belum termasuk carry over 2014 sebesar Rp 29 triliun.

“Dari sisi pendapatan, kami menargetkan bisa mencapai Rp 19 triliun atau tumbuh 52 persen dibandingkan pendapatan usaha 2014 dengan menargetkan laba bersih 2015 tumbuh 35 persen menjadi Rp 730 miliar,” 

Untuk mendukung tercapainya target tersebut, PTPP akan menerbitkan Obligasi Berkelanjutan I Tahap II sebesar Rp 300 miliar yang telah dilaksanakan pada awal Februari 2015.

Disamping itu, Perseroan akan melakukan penawaran umum perdana saham (IPO) PT PP Properti pada Mei 2015 dan mendirikan pabrik pracetak di Lampung.

WSKT/PTPP : Konsorsium BUMN Ikut Tender Tol Soroja

Konsorsium BUMN yang digawangi oleh PT Jasa Marga Tbk menyatakan, telah berpartisipasi dalam tender pengelolaan ruas jalan tol Soreang-Pasir Koja (Soroja) di Bandung, Jawa Barat.

“Kita telah masuk dalam prakualifikasi tender,” tutur Direktur Keuangan JSMR Reynaldi Hermansjah ditemui di kantor Kementerian BUMN, Jakarta, Selasa (3/3).

Menurut dia, perusahaan pelat merah yang turut serta dalam tender, PT PP (Persero) Tbk dan PT Waskita Karya (Persero) Tbk, melalui anak usahanya PT Waskita Toll Road. Adapun komposisi konsorisum adalah Jasa Marga sebesar 55%, sisanya dimiliki oleh PTPP dan Waskita Karya.

Ruas tol Soroja memiliki panjang 10,57 kilometer (km). Adapun investasi yang dibutuhkan diperkirakan mencapai Rp1,9 triliun.

Konsorsium BUMN termasuk salah satu dari tiga kelompok yang lolos dalam tahap prakualifikasi tersebut. Dua kelompok lainnya, yaitu PT Cipta Marga Nusaphala Persadha (Tbk), Wijaya Karya dan terakhir adalah PT Bangun Tjipta Sarana.

Diakuinya, mekanisme pendanaan apabila perseroan menang adalah menggunakan kas internal 30% dan eksternal 70%.

Di samping itu, operator jalan tol tengah menjajaki tender pengelolaan dua ruas tol pada tahun ini, yakni Balikpapan-Samarinda dan Pandaan-Malang.

“Sesuai peraturan pemerintah pengelolaan tol tidak boleh satu perusahaan, jadi kami akan menggandeng perusahaan lain,” ungkapnya. 

Government allocates IDR9.8trn for Kalimantan Infrastructure

The central government hopes local administrations in Kalimantan will help ease the land-acquisition process for infrastructure development in the region as it has allocated IDR9.8trn of the state funds for the project. More than half of the budget will go to road construction. Kalimantan is prioritized as Java and Sumatra already have good road networks. The government would start the construction of the Balikpapan – Samarinda toll road this year to improve logistics and transportation in the region. The government will use a USD65m loan from China and allocate IDR350bn from state budget. The four dam construction in Kalimantan including Marangkayu and Tritip in East Kalimantan, as well as Riam Kiwa in south Kalimantan will also begin this year. Public Works and Public Housing Ministry has also set aside IDR700bn in the revised budget to build housing in border areas this year. In the 2015 revised budget, the ministry has allocated a total IDR118trn to finance around 12,000 projects. As of this month, around 5,000 projects have been opened for tender. (Jakarta Post)

¨ In the next five years, the infrastructure projects will be focused outside of Java – previously Java was the center of Indonesia’s development. These plans would benefit some listed construction companies such as Adhi Karya (ADHI), Wijaya Karya (WIKA), Waskita Karya (WSKT), Pembangunan Perumahan (PTPP), and Jasa Marga (JSMR) because they are owned by the government and have experience in toll road, harbor, and power plant construction. In order to ease the land clearing process, the government is set to revise Presidential Decree Number 71/2012, where currently the project has to be restarted from scratch if the land clearing process only reached 70%.

PTPP menargetkan mampu memperoleh kontrak baru senilai Rp27.5 triliun pada tahun 2015 ini

PTPP menargetkan mampu memperoleh kontrak baru senilai Rp27.5 triliun pada tahun 2015 ini, atau naik sekitar +36.1% dari kontrak baru 2014 yang mencapai Rp 20.2 triliun. Dari target kontrak baru tahun ini tersebut, PTPP menargetkan sebesar Rp 17.8 triliun dari proyek pemerintah dan BUMN. Ditambah dengan carry over sebesar Rp 27.7 triliun, maka manajemen PTPP optimis mampu menggarap kontrak sebesar Rp 55.2 triliun dengan target Pendapatan sebesar Rp 19 triliun dan Laba Bersih Rp 730 miliar. Guna merealisasikan target tersebut, PTPP menganggarkan capital expenditure sebesar Rp 1.8 triliun yang rencananya akan dibiayai dari kas internal, penerbitan obligasi serta pinjaman bank. Awal Pebruari ini PTPP sudah menerbitkan obligasi berkelanjutan I senilai Rp 300 miliar.

PTPP berencana mengikuti tender kontrak pembangunan proyek perluasan Pelabuhan Belawan di Sumatera Utara dengan total kontrak senilai Rp 650 miliar

PTPP berencana mengikuti tender kontrak pembangunan proyek perluasan Pelabuhan Belawan di Sumatera Utara dengan total kontrak senilai Rp 650 miliar. Menurut Direktur Teknik dan Pemasaran PTPP, I Wayan Karioka, dalam proyek perluasan kapasitas Pelabuhan Belawan menjadi 750 meter persegi dari sebelumnya 350 meter persegi tersebut, PTPP akan bertindak sebagai kontraktor tunggal. Selama 2015 ini PTPP menargetkan perolehan kontrak baru sebesar Rp 27.5 triliun, dimana hingga akhir Januari PTPP telah memperoleh kontrak baru sebesar Rp 140 miliar.

Indonesian Property Expo 2015

We visited the Indonesian Property Expo 2015. Di pameran, hadir developer terkemuka Indonesia diantaranya ASRI, MTLA, KIJA, CTRA, BKSL, WIKA, PTPP, dan ADHI. Umumnya, ekspo menjual properti dengan harga di bawah Rp1 miliar/ unit, yang menurut agen masih memiliki permintaan yang besar. Selama kunjungan kami, sebagian besar orang berbondong-bondong ke gerai milik developer terkenal.

Take up rates is back to average. Secara rerata, performa penjualan (take up rates) adalah sekitar 40%-60% untuk hampir semua proyek yang ditampilkan. Pada saat booming, take up rates dapat mencapai 80-100%. Pembicaraan kami dengan agen properti mengindikasikan bahwa 60% dari pembeli dalam ekspo tersebut adalah investor yang berharap adanya keuntungan penjualan (capital gain).

Diskusi itu juga mengindikasikan bahwa pembeli lebih memilih untuk membeli unit yang kecil dibandingkan dengan unit yang lebih besar. Kami meyakini bahwa pembeli tersebut adalah investor yang bertaruh pada apresiasi harga properti tahun ini.

Price appreciation still seen. Apresiasi harga terlihat jelas sepanjang ekspor dibandingkan dengan pada acara serupa pada awal 2014. ASRI meluncurkan klaster barunya yaitu Andara dan Bahana di Suvarna Sutera, Pasar Kemis, pada 26 Februari. Harganya sekitar Rp3,6 juta per meter2 vs Rp2,5 juta per meter2 pada awal 2014, berdasarkan keterangan agen itu.

Sementara itu, ke arah Selatan Jakarta, Sentul Tower Apartment milik BKSL saat ini diberi harga Rp17 juta per meter2 vs. Rp12 juta per meter2 tahun lalu. PP Property juga berencana meluncurkan apartemen baru bernama The Ayoma, yang diberi harga Rp16 juta-Rp17 juta per meter2, berlokasi di BSD City, Serpong.

Harga itu juga setara dengan Serpong Midtown milik SMRA atau The Brooklyn Heights milik WSKT di Alam Sutera. Kami meyakini pengembang masih bertumpu pada kenaikan rerata harga jual (ASP) tahun ini dan memprediksi ada kenaikan harga minimal sebesar 10% YoY.

To create ASP hike, some developers rely on new infrastructure. Sebagai contoh, PTPP memprediksi ada kenaikan harga apartemennya yaitu Grand Kamala Lagoon di Bekasi setelah dibukanya jembatan baru tahun ini, berdasarkan keterangan agen.

Pembicaraan dengan agen tersebut menunjukkan bahwa ASP dapat naik 10% hanya karena akses baru itu. Proyek itu diberi harga Rp13 juta per meter2 saat ini, berdasarkan keterangan agen tersebut. Sementara itu, MTLA juga memprediksi ada kenaikan harga lahan di proyeknya Metland Puri setelah adanya akses baru pada pertengahan 2015.

Berdasarkan keterangan agen properti itu, lahan di daerah itu dihargai Rp8 juta per meter2 tahun lalu dan saat ini sudah naik menjadi Rp11 juta-Rp12 juta per meter2 setelah konstruksi flyover selesai pada kuartal I/2015. Agen itu menyebutkan bahwa akses tersebut akan mulai dibuka pada semester II/2015 di mana kenaikan harga diprediksi akan terjadi.

Aiming for high marketing sales growth. Kami meyakini sebagian besar pengembang akan mencari marketing sales dari kenaikan ASP dan peluncuran proyek baru tahun ini. Di sisi lain, pengembang besar seperti BSDE, SMRA, dan PWON akan membidik marketing sales melalui peluncuran proyek baru, di mana pengembang kecil lebih bertaruh ASP mereka akan naik sehingga harga properti mereka akan bersaing dengan properti milik pengembang besar.

Sementara itu, kami menilai performa penjualan tidak kembali ke masa-masa booming properti pada 2012-2013. Pembeli rumah masih terikat dengan pengembang yang memiliki konsep kuat dan yang memiliki potensi apresiasi nilai. Untuk nama besar, kami lebih memilih PWON, SMRA, dan BSDE. Untuk pengembang kecil, kami menyukai CTRS dan LPCK.

Indonesia Construction: Hurdles from the Parliament

§ IDR72.9tn capital injection for 40 SOEs likely rejected: To accelerate the economy, the government had submitted to the House, plans for capital injection of IDR72.9tn into 40 SOEs under the 2015 Revised State Budget (exhibit 8), a major revamp from the IDR5tn allotment for 4 SOEs currently already approved. The government aims to push SOE investment in infrastructure projects such as electricity, shipping, transportation and clean water facilities. For the 5 listed SOEs on the proposed list, the capital injection would occur through rights issues, with the government participating for the first time. However, some Parliament (DPR) members appear concerned that business plans for some SOEs remain inadequate, which could result in limited contribution to infrastructure development.
§ Rights issue for ADHI’s monorail projects likely to be approved: With 51% of its shares owned by the government, ADHI has had difficulties raising additional capital due to the government’s reluctance to participate, causing growth limitations. ADHI now plans to conduct a rights issue in two phases (exhibit 9). The first phase, in 2015, would raise IDR2.75tn (IDR1.4tn from the government) to construct the IDR9.9tn Cibubur-Cawang-Senayan monorail. The second phase, in 2016, would raise IDR3.9tn (gov’t: IDR2tn) for the IDR15.6tn Bekasi Timur-Cawang monorail project. With details on the rights issue remaining unclear, we have not implemented any changes to our earnings on ADHI at this stage.
§ IDR3.5tn cash injection from the government for WSKT: Similar to ADHI, WSKT plans to conduct a rights issue in two phases: IDR5.3tn (gov’t: IDR3.5tn) in 2015 and IDR4.7tn (gov’t: IDR3.1tn) in 2016. WSKT aims to utilize the proceeds to fund infrastructure projects for toll-road construction (75% of total proceeds) and a power transmission project in Sumatra (25%). No changes to WSKT earnings for the time being, pending greater clarity on its rights issue plan.

Outlook: Revenue and margin improvement to counter EPS dilutions
Our back-of-the-envelope calculations suggest that the rights issue for ADHI would dilute EPS by 14.5% in 2015 and 13.5% in 2016, assuming a 30% revenue increase from the monorail projects. For WSKT, we believe it translates into EPS dilution of 11.8% in 2015 and 9.4% in 2016, assuming a 25% sales increase from increased projects. That said, we believe the capital additions (exhibit 9) will benefit WSKT and ADHI, due to increasing revenues from the higher number of projects and steady margins despite higher capex.

Recommendation: ADHI still HOLD, WSKT cut to REDUCE
At this stage, we retain our NEUTRAL sector call while we await program implementations and gauge the effectiveness of the new land-clearing law, despite the market’s high expectations about President Jokowi’s infrastructure program. On individual stocks, recent price movements have resulted in lower rating for WSKT to REDUCE and an upgrade for TOTL to HOLD (exhibit 5), as we retain our 12M target prices for all stocks. Downside risks to our sector call include lower-than-expected government projects, while upside risks include higher margins from lower material costs.

Indo Construction Sector: Sticking to its guns

● The recent comments by the Parliament to reduce equity injection
into non-infrastructure-related SOEs and channelling it to
infrastructure-related SOEs further reinforce our positive view on
the government’s determination to see its infrastructure
development plans through. However, the budget remains fluid
until the revised 2015 budget is finalised by the Parliament
(expected by 13 February 2015).

● The addition of PT PLN (IDR5 tn) into the government’s equity
injection list marks a positive indication that the government
remains focused on infrastructure.

● Based on the original draft revised budget, Waskita has been
earmarked to receive IDR3.5 tn and Adhi IDR1.4 tn. WIKA
recently proposed a IDR7.2 tn equity injection over two years from
the government. This was not included in the original draft budget.

● We maintain our positive outlook on Indonesia construction sector
and believe Indonesia in undergoing a multi-year construction boom.
We like WIKA, PTPP, Waskita, and Total as beneficiaries of
infrastructure development in Indonesia.

Mandiri Investment Forum (MIF): Infrastructure site visit

 Seeing is believing. As part of the 2015 Mandiri Investment Forum (MIF), we hosted several investors to experience two mega infrastructure projects that are currently being constructed in Jakarta. First, we visited the US$400mn Terminal 3 extension project at Soekarno-Hatta International Airport (SHIA) and the US$4bn Kalibaru seaport project at Tanjung Priok.

 1st phase of Terminal 3 extension project to be completed by Sep 15 and full completion by Jan 16. The SHIA Terminal 3 extension project is progressing well. The airport terminal construction will take ~30 months in total to complete and is handled by six contractors (Wijaya Karya, Waskita Karya, Hyundai Engineering, Pembangunan Perumahan, Jaya Teknik Indonesia and Indulexco) in total, wherein Wijaya Karya (WIKA) is the leader of the consortium. Upon full completion (Jan 16), Terminal 3’s total capacity will become 25mn passengers per annum/mpa (from 4 mpa). In total, SHIA’s capacity will be doubled (43 mpa) with the completion of the project. However, SHIA will remain to be overcapacity as the number of passengers has reached 62 mpa in 2013.

 PTPP is on track to deliver the 1st terminal in the Kalibaru seaport project by 1Q this year. The first terminal’s (container – 1.5mn TEUs capacity) progress has reached ~60% and Pelindo has set up a JV with Mitsui to operate the project. The stage 1 itself will comprise of five terminals (3 containers and 2 petroleum terminals), wherein all of the terminals would be completed by 2016. The sole contractor of this project is Pembangunan Perumahan (PTPP).

 Not only the Kalibaru project, Pelindo II is undertaking major seaport facilities upgrade. As part of Pelindo II’s effort to solve bottle-necks on cargo movement in Tanjung Priok seaport, the state-owned seaport operator is currently 1) building Access Priok toll road that will facilitate higher containers flow into its terminal (estimated completion by Dec 15) and 2) developing the 34 km Cibitung-Cilincing toll road concession by acquiring 40% stake from Plus Expressway, the existing concession holder. The US$600mn toll road project, that will connect the port with the developed industrial area of Karawang, would take two years to complete. In addition, the CFO also mentioned that Pelindo II will participate in the development of the international-hub seaport in Sorong, Papua.

 OVERWEIGHT on construction sector on the back of state-budget reallocation from subsidy to infrastructure spending. For the first time in the history of Indonesia, the government will allocate more budget for infrastructure compared to subsidy bill. We continue to like construction sector as the major beneficiary of the government’s commitment into infrastructure. Top picks in the sector are PTPP (BUY Rp4,200 TP) for its strong exposure into seaport development, WTON (BUY, Rp1,600 TP) for its low capacity risk constraint, and WIKA (BUY, Rp4,000 TP) for its strong exposure into EPC segment.

Indonesia Construction: Runway cleared for take off

§ Potential infrastructure projects valued over USD450b to be
dished out over 2015F-2019F. All eyes on gov’t execution
with positive newsflow on new contracts likely to start
emerging in 2Q15.

§ Slew of gov’t-related projects are estimated to lead to new
order book CAGR of 25%. This would pave the way for
earnings to grow at 31% CAGR in 2015F-2016F.

§ Reiterate OVERWEIGHT on continued positive outlook with
high valuations likely to stay given higher growth profile and
ROEs for Indonesia companies compared to regional peers.
Raise TPs and reiterate Top Picks are PTPP and ADHI.

Dissipating roadblock through higher budget
Recent government plan to raise infrastructure budget to IDR290t
(from IDR190t) marked a good start for the construction sector’s
2015 outlook. This will provide good leverage to accelerate
infrastructure development and trigger the private sector to
participate on the back of the USD450b infrastructure spending
plan over the next five years. While most of the projects are not
particularly new, potential breakthrough will likely stem from
better execution. Government has additionally announced an
unprecedented plan for potential capital injection into contractors
and dividend elimination, a sign that the sector will be a top
priority over the next five years.

Order book replenishment set to recover and soar
Delays in project bidding process last year were widely anticipated
given it was an election year and had a transitional period for the
new government. On a more positive note, we believe that new
projects are set to resume in 2015F-2016F, growing at an estimated
CAGR of 25% with plenty of upside.

Reiterate OVERWEIGHT; PTPP & ADHI are Top Picks
Most contractors will put greater focus on securing governmentrelated
large-scale infrastructure projects with great value,
eliminating pressure in the highly competitive small-scale project
segment. Growth is likely to be capped at 30% given limitation on
number of workers.

We raise our contractors’ TPs by 30% on average given the
infrastructure boom will typically result in a high PER of 30x. On
top of that, with higher growth outlook and ROEs compared to
regional peers, higher valuation is warranted. Our Top Picks are
still PTPP (on its continuous strong position in the sector) and ADHI
(as it is set to benefit from spillover of proliferation of growing
infrastructure projects). Maintain BUY for WSKT on having the
highest carry over growth. Downgrade WIKA to HOLD given less
than 10% upside at 30x PER.

Anak usaha PTPP, PP Properti menargetkan pendapatan penjualan atau marketing sales Rp2,33 triliun dan target laba kotor sebesar Rp503 miliar pada 2015 ini

Anak usaha PTPP, PP Properti menargetkan pendapatan penjualan atau marketing sales Rp2,33 triliun dan target laba kotor sebesar Rp503 miliar pada 2015 ini. PP Properti membukukan pendapatan penjualan sebesar Rp1,3 triliun tahun lalu, melebihi target awal yang sebesar Rp1,1 triliun. PP Properti akan mengandalkan dua proyek, yakni central business district Grand Kamala Lagoon di Kalimalang, Jakarta. Dan kedua, superblok Grand Sungkono Lagoon di Surabaya, Jawa Timur.

PTPP bangun The Ayoma Apartemen senilai Rp 500 M

. Perusahaan konstruksi PT PP (Persero) Tbk melalui anak usahanya, PT PP Properti, mengembangkan proyek apartemen baru di Serpong, Tangerang. Proyek tersebut berada di lahan seluas satu hektar dan PT PP Properti akan membangun dua menara apartemen, yaitu The Ayoma Apartment. 

“Ini strategi perusahaan dalam memenuhi peningkatan kebutuhan hunian dengan nilai investasi Rp 500 miliar,” ujar Direktur Operasi PT PP Properti Galih Saksono, Selasa (6/1). 

Galih menuturkan, Serpong menjadi pilihan lokasi apartemen karena kawasan tersebut tengah berkembang. Sementara itu, menurut Project Manager The Ayoma Apartment, Nurjaman, lokasi tersebut merupakan lokasi yang unik karena masih ditumbuhi pepohonan rindang. Pihaknya tidak akan menggusur lingkungan asri tersebut, namun menjadikannya nilai tambah. 

“Kami targetkan 600 unit pada tower pertama terjual dalam waktu enam bulan dengan target pendapatan keduanya Rp 1 triliun,” ujar Nurjaman. 

The Ayoma sendiri akan mencakup 1.000-1.200 unit apartemen. Saat ini, Ayoma sedang tahap finalisasi. Nantinya, apartemen ini akan dilengkapi lahan parkir basement. 

Khusus untuk Ayoma, PT PP Properti mendatangkan arsitek dari Singapura. Harga apartemen di sini dibanderol Rp 17 juta per meter persegi dengan tipe yang masih akan disesuaikan. 

Rencananya, apartemen tersebut akan dibangun setelah seluruh unit terjual sebanyak 60% saat peluncurannya pada Februari mendatang. Galih menuturkan, target pasar apartemen ini adalah masyarakat kelas menengah sampai kelas atas. 

“Kami targetkan mulai dibangun pada kuartal IV atau September 2015. Sementara pembangunannya diperkirakan selesai 20-24 bulan setelahnya,” ujar Galih.

Sebelumnya, PT PP Properti juga tengah merancang pembangunan apartemen Grand Kamala Lagoon di atas lahan seluas kurang lebih 25 hektar di kawasan Bekasi. Untuk proyek tersebut pengembang pelat merah itu mendapat kucuran kredit dari Bank BTN senilai Rp 250 miliar.

Construction Sector: 2015 Capex to Grow 63% YoY

The Indonesian construction companies are expanding in 2015 post the election year and the new government’s ambition to push infrastructure developments in the country. Investor Daily reported that eight listed construction companies are planning to spend Rp6.0 tn in capex next year, vs Rp3.7 tn in 2014. Off the companies mentioned, the largest spending will be done by PT Pembangunan Perumahan (Rp1.8 tn, +286% YoY), Wijaya Karya (Rp1.7 tn, +31% YoY) and Waskita Karya (Rp1.5 tn, +74% YoY).

Impact of Falling Crude Oil Prices and Rupiah

Crude oil prices have fallen 39% since end-September and are close to USD54.71/bbl, which would benefit net importer Indonesia and various companies. However, this could be partially offset by the weak IDR, as the recent outflows from emerging markets has caused it to depreciate 3.6% against the USD. In the last two years, many firms also increased their foreign-denominated borrowings. Here, we look at companies that may benefit from this situation.
¨ Indonesia is a beneficiary of low crude oil prices. The country’s current account deficit (CAD) since this year stemmed from the import of oil. Indonesia imports oil amounting to USD34bn or 22.7% of total imports, while its oil exports totalled USD11.1bn or 7.5% of total exports. The low oil prices may result in low inflation, which, in turn, would also help the middle income segment regain some of its purchasing power. Note that Indonesia’s oil production has fallen to 727,090 barrels of oil per day (bopd) in 2013 from 1,012,860 bopd in 2003.
¨ Risks increase from the IDR depreciation. This is because many Indonesian companies have grown their foreign-denominated debts in the last two years. At the same time, with its CAD and trade deficit, Indonesia is also vulnerable to capital outflows that may exacerbate the weakness of the IDR. But, in a Bank Indonesia (BI) survey, around 59% of companies that have high exposure to currency risks have hedged against this exposure, while 25% of companies that have low exposure have already hedged against the risk. Hence, we do not believe that a crisis similar to the situation in 1997 would occur, as there are currently more companies hedging against the currency risk and their gearing levels are still relatively lower than that of 1997.
¨ Gearing levels still manageable but many players may report forex losses in 4Q14. Based on our analyses, the aggregate leverage companies listed on the Jakarta exchange was 66.9% and the portion of foreign currency debts was at 31.1% of total debts as at Sep 2014. Nevertheless, many companies could report forex losses in 4Q14 if the IDR remains at the current levels. Note that the BI’s IDR/USD median exchange rate at end-Sep 2014 used in financial reports was IDR12,212/USD (vs IDR12,720/USD as at 17 Dec 2014).
A safe bet. From looking across the sectors, we found that many companies would benefit from low crude oil prices, from consumer to petrochemical players. However, the recent depreciation of the rupiah would offset the benefit of the low oil prices. In this case, we like companies dealing in consumer staples like Indofood CBP Sukses Makmur (ICBP) and Matahari Putri Prima (MPPA); cigarette maker Gudang Garam (GGRM); construction companies Pembangunan Perumahan Persero (PTPP) and Wijaya Karya Persero (WIKA); infrastructure utilities company Perusahaan Gas Negara Persero (PGAS); plantation player Sampoerna Agro (SGRO); telecommunications provider Telekomunikasi Indonesia (TLKM); and transportation/shipping companies. Other sectors such as packaging should also benefit from low oil prices.

PTPP: 2015, PTPP targetkan laba bersih naik 35%

PT PP Tbk (PTPP) menargetkan laba bersih tahun 2015 mendatang meningkat sekitar 35% dari realisasi tahun ini. Kenaikan ini sejalan dengan esimsi menanjaknya penjualan sekitar 34% secara year-on-year (yoy).

Bambang Triwibowo, Direktur Utama PTPP mengatakan, tahun ini, perseroan memperkirakan laba bersih ada di angka Rp 530 miliar. Dengan demikian, tahun depan, laba bersih emiten pelat merah ini diproyeksikan mencapai Rp 715,5 miliar.

Adapun, penjualan tahun ini, diperkirakan ada di kisaran Rp 14,3 triliun.

“Tahun depan, penjualan kami targetkan bisa Rp 19,2 triliun,” ujar Bambang beberapa waktu lalu.

Sekedar informasi, perkiraan pencapaian kinerja PTPP tahun 2014 tersebut berubah dari estimasi awal. Sebelumnya, manajemen menargetkan penjualan tahun ini mencapai Rp 16,2 triliun. Sedangkan, laba bersih sekitar Rp 520 miliar.

Terkait belanja modal (capex), BUMN konstruksi ini menganggarkan sebesar Rp 1,8 triliun. Separuh dari alokasi capex ini akan digunakan untuk keperluan ekspansi perseroan di bidang properti.

Sisanya, perusahaan akan digunakan untuk bisnis lainnya, salah satunya, menambah pabrik beton pra cetak.

Jokowi theme still alive, dominating performance (infra).

JCI managed to post gain +.28% despite the sharp fall in commodity stocks due to sharp fall in the oil prices sent airline GIAA +10% finally. The index was supported by big cap like TLKM +1.95%, SMGR + 4.2%, INTP +3%, BBNI +3.3% and ISAT +11.75%, SCMA +3% on the back of reinclusion into Syria compliant lists after taken out last week!. Best performing sector were the construction TOTL +7%, WIKA +3.8%, PTPP +5.7%, WKST +5.3% still on Jokowi infra spending theme post fuel price hike. On the other hand CPO plays fell sharply on 3% correction in cpo prices on weak crude AALI -4%, LSIP -3.8%. Some property stocks managed to move up on news flow that BI plans to ease mortgage LTV regulation. IDR were weak, mainly due to weakness in commodity prices especially CPO which could reduce export revenues. October trade data turns to a slight surplus US$0.02bn from prev –US$0.27bn while Nov CPI was higher than expectation at 6.2% vs. 6.1 our expectation driven by fuel price hike.

Indonesia Construction Sector – And the beat goes on..

● We believe there is a dire need for infrastructure improvements in Indonesia, as it is among the lowest ranked countries in Asia in Global Competitiveness Index and overall infrastructure. Full report

● Jokowi revealed his infrastructure targets for 2019, implying multi-year massive infrastructure spending. We believe that growth in public spending (savings from fuel subsidies) and private investments will spur infrastructure expenditure.

● Drawing parallels with Malaysia and India, we believe Indonesia could be a multi-year re-rating story, despite the strong share price performance so far. We believe the upside will be driven by (1) potential earnings upgrades post-election year, (2) valuations re-rating following a multi-year construction boom, and (3) construction stocks which are still under-owned and under-researched.

● We initiate coverage with OUTPERFORM ratings on WIKA, PTPP, Waskita and TOTAL as beneficiaries of multi-year massive infrastructure spending. We initiate coverage on Wika Beton with a NEUTRAL rating on stretched valuations & share overhang concerns.

PTPP: Beneficiary Of Port Projects

With the Government planning to ramp up infrastructure development, including building 24 new ports, we think Pembangunan Perumahan (PTPP) will benefit. Upgrade to BUY as we change our TP to IDR3,600 (from IDR2,590, 19.2% upside) using DCF-based valuation that reflects 20.7x FY16F P/E to capture the growth opportunities. It has higher chances of winning those contracts due to its experiences in ports, in our view.

¨ 24 new ports will be developed. President Joko Widodo (Jokowi) has plans to build 24 new ports across Indonesia in 2015-2019. According to the National Development Planning Ministry (Bappenas), the projects are estimated to cost ~IDR39.5trn. Although timeline details have not been confirmed, we believe that Pembangunan Perumahan Persero (Pembangunan Perumahan) will have higher chances of being awarded the port projects because it has the most extensive experience in port/jetty development, with 13 ports/jetties in its portfolio.
¨ Other infrastructure projects will also benefit the company. As a general state-owned enterprise (SOE) contractor, infrastructure projects that have been planned by Bappenas in 2015-2019 like road, toll roads airport and irrigation developments, among others, will also benefit Pembangunan Perumahan. Although we have factored in the possibility of more projects into our orderbook projections, we slightly trim our FY15/FY16 new contract projections to IDR30.5trn/IDR42.7trn (-9%/-9%) respectively to tone down our excitement. This is still above management’s FY15 guidance of IDR27trn, though. Accordingly, our FY15/FY16 earnings projections drop 19.5%/14% respectively.
¨ Upgrade to BUY (from Neutral). With additional funds from subsidised fuel savings, the potential revision of the 2015 State Budget (APBNP) for better infrastructure allocations and new plans for infrastructure projects in 2015-2019, we are positive that Pembangunan Perumahan will benefit. Therefore, we change our TP to IDR3,600 (from IDR2,590) using DCF with 13.3% WACC in order to capture the growth opportunities to our valuation. Our new TP reflects 20.7x FY16F P/E and offers 19.2% potential upside. Risks to our call include a delayed revision of the APBNP, no extra allocation for infrastructure spending and project commencement delays.

PTPP garap kontrak Rp 37 triliun

Emiten konstruksi pelat merah PT PP (Persero) Tbk (PTPP) kian mendekati target order book hingga akhir tahun. Hingga saat ini, perseroan memperoleh total kontrak atau order book Rp 37 triliun.

Nilai tersebut berasal dari carry over tahun lalu sebesar Rp 21,93 triliun. “Sementara, perolehan kontrak baru yang kami peroleh Rp 15,1 triliun,” imbuh Direktur Keuangan PTPP Tumiyana, Rabu (26/11).

Terbaru, PTPP memperoleh kontrak untuk proyek pembangunan Apartemen Sawangan di Depok, Tol Depok Antasari, Lexington Apartemen, Wang Residence Citicon, dan sejumlah proyek baru lainnya. Nilai kontrak yang baru diperoleh tersebut lebih dari Rp 4 triliun.