CIMB-GK Securities Gives WIKA “Outperform rating”
Jakarta. In its research today, CIMB-GK Securities Indonesia writes that construction sector in 2009 until 2010 will be influenced by stimulus from government. In 2009, the government has plant to use the fund in amount of IDR 12 trillion for infrastructure projects.
The analyst of CIMB-GK Securities Liliana S. Bambang explained that it will influence performance of Indonesian contractors, such as PT Wijaya Karya (persero) Tbk and PT Adhi Karya (persero) Tbk (ADHI). Liliana appraised that WIKA should be better position than ADHI for the future. There are several reason which cause that opinion i.e.;
First, more than 70 % of construction works came from government and state owned enterprise companies. Second, about 72% of concrete businesses are owned enterprise companies projects and infrastructures and third, the risk of WIKA’s balance is lower that ADHI because net cash position of ADhi karya is IDR 424 billion in 2008. As comparison, the net loan of Adhi Karya is amount of IDR 997 billion in 9 months early in 2008.
“WIKA also receives benefit from 10.000 MW projects by market segmentation is 30 %, and most of WIKA’s projects are supported by strong funding, “Liliana explained.
CIMB-GK Securities gave outperform rating to WIKA with price target is IDR 270, “ “According to us, WIKA is the best proxy in enjoying government stimulus in infrastructure sectors because the low balance risk and business diversification,” she said.