Kontan Online

STATE OWNED ENTERPRISE

Construction SOEs relied on the old projects

Monday, 20 February 2017 | Elisabet Lisa Listiani Putri, Hasyim Ashari

JAKARTA. Some construction state owned enterprises (SOEs) and their subsidiaries have released financial reports. The reports show that those SOEs have succeeded to show improvement in their performance.

One of the construction SOEs, which show the significant performance improvement, is PT Waskita Karya Tbk (WSKT). Along the year of 2016, the income of WSKT increased by 68% to Rp 23.7 trillion compared with 2015. During the same period, the net profits of the company also increased by 64% to Rp 1.71 trillion.

Almost similarly with its parent company, the income of PT Waskita Betom Precast Tbk (WSBP) increased by 78% to Rp 4.7 trillion, while the net profits have hiked by 90% to Rp 634 billion.

WSKT and its subsidiary are optimistic to book satisfactory performance during this year. “We are still focusing on the toll road (projects), supported by WSBP, of course,” said Corporate Secretary of WSKT Hadi Susilo, Thursday (16/2).

Meanwhile, PT Wijaya Karya Beton Tbk (WTON), which is the subsidiary of PT Wijaya Karya Tbk (WIKA), also booked a proper performance during the last year. In 2016, the income of WTON has increased by 31% to the level of Rp 3.4 trillion compared with 2015, while its profits increased by 63% to Rp 281 billion.

Nevertheless, WIKA has not yet released its financial report. “Hopefully, the last year’s profits would have increased from the minimum target,” said Corporate Secretary of WIKA Suradi, Sunday (19/2).

Conversely, PT Adhi Karya Tbk (ADHI) recorded a decrease in profits in the last year. ADHI’s profits have dropped by 32.39% from Rp 463.86 billion at the end of 2015 to Rp 313.45 billion in 2016. In fact, ADHI’s income in the last year increased by 17.78% to Rp 11.06 trillion.

This year, ADHI will upgrade the profits through efficiencies in various business lines. The company will also be focusing on completing the suspended projects, such as the light rail transit (LRT) project.

Analyst at Binaartha Parama Sekuritas Reza Priyambada estimates, the new contracts are very essential for the construction issuers. However, ADHI would not as aggressive as other construction issuers in pursuing the new contracts.

This year, the issuers’ performance would rely on the amount of existing contracts and the new contracts. “The issuers would still rely on the existing project in 2017,” Reza said, Sunday (19/2).

Reza recommends ‘hold’ for WTON, with the target price of Rp 940 million per a share. He also recommends ‘hold’ for ADHI with the target price of Rp 2,400 per a share. However, Reza recommends ‘buy’ for WSKT and WSBP with the target price of Rp 3,260 and Rp 720 per a share, respectively. (Muhammad Farid/Translator)

 

Reporter: Elisabet Lisa Listiani Putri, Hasyim Ashari
Editor: Barratut Taqiyyah
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