PTPP
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21% upside. BUY
4th December 2020
Price Rp1595
Target price Rp1930
4th December 2020
Price Rp1595
Target price Rp1930
68% of contract target achieved
As of Nov 2020, PTPP has booked total new contracts of IDR.17,42 trillion which is 68% of their revised target for new contract of IDR.25,5 trillion. Major contracts by type are: Building 26.18%, Industry 22.98%, Oil & Gas 15.32%, Roads & Bridges 14.10%, Irrigation 9.73%, Power Plants 6.47%, Dam 2.36%, Airport 2.09%, and Railway 0.78%. The projects achieved by the Company up to the third week of November 2020 include: Smelter Feronikel Kolaka Line 2,5,6, worth IDR.3.23 trillion, RDMP JO IDR.1.80 trillion, SPAM Pekanbaru-Kampar IDR.1.26 trillion, Bogor Heritage Apartment IDR.1.17 trillion, Mandalika Circuit IDR.817 billion, Sport Centre Banten IDR.794 billion, SGAR Alumina IDR.660 billion, RDMP Regular IDR.576 billion, Jalan Kendari-Toronipa IDR.412 billion. We are optimistic that PTPP’s contract 2020 target is achievable since the company has historically been able to deliver on targets.
Continuing two other phase of Smelter Kolaka worth IDR. 3.22 Trln
After completing phase 1, PTPP was awarded by CNI (PT Ceria Nugraha Indotama) the owner, construction of Smelter Ferronickel Phase 2 (Production Line 2) and Phase 4 (Production Line 5-6) in Southeast Sulawesi. PTPP and CNI have signed a cooperation agreement for construction of Smelter Ferronickel Production Line 2 (Phase 2) and Production Line 5-6 (Phase 4). The project has a value of IDR.1.01 trillion for Phase 2 and IDR.2.21 Trillion for Phase 4. The work period is 26 (twenty six) months for Production Line 2 and 34 (thirty four) months for Production Line 5-6.
Valuation: 21% upside
Based on our DCF valuation, we have upgraded our target price within one year to IDR.1930/share or trading at 15,73x PER. With 21% upside, we maintain our recommendation, BUY.
As of Nov 2020, PTPP has booked total new contracts of IDR.17,42 trillion which is 68% of their revised target for new contract of IDR.25,5 trillion. Major contracts by type are: Building 26.18%, Industry 22.98%, Oil & Gas 15.32%, Roads & Bridges 14.10%, Irrigation 9.73%, Power Plants 6.47%, Dam 2.36%, Airport 2.09%, and Railway 0.78%. The projects achieved by the Company up to the third week of November 2020 include: Smelter Feronikel Kolaka Line 2,5,6, worth IDR.3.23 trillion, RDMP JO IDR.1.80 trillion, SPAM Pekanbaru-Kampar IDR.1.26 trillion, Bogor Heritage Apartment IDR.1.17 trillion, Mandalika Circuit IDR.817 billion, Sport Centre Banten IDR.794 billion, SGAR Alumina IDR.660 billion, RDMP Regular IDR.576 billion, Jalan Kendari-Toronipa IDR.412 billion. We are optimistic that PTPP’s contract 2020 target is achievable since the company has historically been able to deliver on targets.
Continuing two other phase of Smelter Kolaka worth IDR. 3.22 Trln
After completing phase 1, PTPP was awarded by CNI (PT Ceria Nugraha Indotama) the owner, construction of Smelter Ferronickel Phase 2 (Production Line 2) and Phase 4 (Production Line 5-6) in Southeast Sulawesi. PTPP and CNI have signed a cooperation agreement for construction of Smelter Ferronickel Production Line 2 (Phase 2) and Production Line 5-6 (Phase 4). The project has a value of IDR.1.01 trillion for Phase 2 and IDR.2.21 Trillion for Phase 4. The work period is 26 (twenty six) months for Production Line 2 and 34 (thirty four) months for Production Line 5-6.
Valuation: 21% upside
Based on our DCF valuation, we have upgraded our target price within one year to IDR.1930/share or trading at 15,73x PER. With 21% upside, we maintain our recommendation, BUY.
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