ADHI
Contact our analyst Revita
101% upside, Buy
21st October 2022
Current price Rp 610
Target price Rp1230
21st October 2022
Current price Rp 610
Target price Rp1230
9M22 new contract jumped 57% YoY
As of 9M22, ADHI new contracts amounted to IDR 18.1 trillion, up by 57.3% YoY. IKN projects contributed IDR 1.4 trillion, mostly from the construction of the IKN Section 3A Toll Road Karangjoang – Kariangau Segment with a value of IDR 1.1 T. In addition, ADHI has also obtained a contract for the construction of workers' housing projects and fenders for the Balang Island bridge. ADHI's new contracts come from construction (90%), property (6%), and other businesses (4%). We maintain our estimate that this year will see moderate growth just like 2021. We estimate the total order book for 2022 will reach IDR 52.3 trillion or up by 8% yoy.
As of 9M22, ADHI new contracts amounted to IDR 18.1 trillion, up by 57.3% YoY. IKN projects contributed IDR 1.4 trillion, mostly from the construction of the IKN Section 3A Toll Road Karangjoang – Kariangau Segment with a value of IDR 1.1 T. In addition, ADHI has also obtained a contract for the construction of workers' housing projects and fenders for the Balang Island bridge. ADHI's new contracts come from construction (90%), property (6%), and other businesses (4%). We maintain our estimate that this year will see moderate growth just like 2021. We estimate the total order book for 2022 will reach IDR 52.3 trillion or up by 8% yoy.
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Right issue IDR 3.874 trillion
ADHI has obtained permission to conduct a right issue worth IDR 3,874 trillion, with State Capital Participation "PMN" of IDR 1.976 trillion and Public participation of IDR 1.898 trillion, by issuing a maximum of 7,004,510,932 (seven billion forty-four million five hundred and ten thousand nine hundred and thirty-two) new series B shares as well as pre-emptive rights with an exercise price of IDR 550 / share. Current shareholders holding ten million old shares of the Company whose name is recorded in the Company's Register of Shareholders (DPS) on the last recording date of October 26, 2022, are entitled to 19,783,232 (nineteen million seven hundred and eighty-three thousand two hundred and thirty-two) preemptive rights with an exercise price of IDR 550 per share. The proceeds will be used to increase the Company's capacity to complete National Strategic Projects, including the Solo-Yogyakarta-YIA Kulonprogo Toll Road Project, Yogyakarta-Bawen Toll Road and Karian-Serpong (East) SPAM, and other business developments both in the field of infrastructure and environmental-based businesses.
Valuation: 101%upside
We maintain our target price of IDR 1,230/share which is equal to a PER of 29x. With 101% upside potential, our recommendation is maintained as BUY.
ADHI has obtained permission to conduct a right issue worth IDR 3,874 trillion, with State Capital Participation "PMN" of IDR 1.976 trillion and Public participation of IDR 1.898 trillion, by issuing a maximum of 7,004,510,932 (seven billion forty-four million five hundred and ten thousand nine hundred and thirty-two) new series B shares as well as pre-emptive rights with an exercise price of IDR 550 / share. Current shareholders holding ten million old shares of the Company whose name is recorded in the Company's Register of Shareholders (DPS) on the last recording date of October 26, 2022, are entitled to 19,783,232 (nineteen million seven hundred and eighty-three thousand two hundred and thirty-two) preemptive rights with an exercise price of IDR 550 per share. The proceeds will be used to increase the Company's capacity to complete National Strategic Projects, including the Solo-Yogyakarta-YIA Kulonprogo Toll Road Project, Yogyakarta-Bawen Toll Road and Karian-Serpong (East) SPAM, and other business developments both in the field of infrastructure and environmental-based businesses.
Valuation: 101%upside
We maintain our target price of IDR 1,230/share which is equal to a PER of 29x. With 101% upside potential, our recommendation is maintained as BUY.
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