PTPP
Contact our analyst Revita
9% upside. Hold
23rd November 2021
Price Rp1290
Target price Rp1400
23rd November 2021
Price Rp1290
Target price Rp1400
Targetting 26% new contract growth
As of 9M21, PTPP booked total new contracts of IDR 13,481 trillion which is 48% of their revised target of IDR 27.8 trillion. New contracts’ based on business are: Construction 56%, EPC 2%, others 2% and subsidiaries 40%. The top new contracts during 9M21 are Junction Dawuan toll road IDR 825 billion, Pegadaian Tower IDR 594 billion, Dredging benoa IDR 583 billion, The Attorney General's Building IDR 500 billion, Papua Governor's Office IDR 357 billion. Labuan Bajo Airport Building IDR 357 billion, KIT batang road phase 1.4 IDR 350 billion, Kasawan Pura Besakih Arrangement IDR 344 billion, mandalika Infrastructure phase 2 IDR 342 billion. Based on ownership, new contracts 9M21 come from SOEs 59%, Government 32%, and private 9%. To maximize the acquisition of new contracts in 2021, PTPP will focus on strategic projects owned by SOEs and Government. In 2021, PT PP has budgeted Capex of IDR 2.74 trillion, down from their earlier target. Most of the capital expenditure will be used to finance toll road development projects. We believe PTPP will see a revenue increase compared to last year. We are conservative in PTPP’s 2021 contract target but we believe PTPP’s revenue will be higher than last year. We estimate revenue CAGR during 2021-2022 of 16%.
Maintaining interest bearing debt at 1.5x
As of 9M21, PTPP debt increase means a total debt / equity ratio of 2.95x compared to 2020FY at 2.82x. Most of the new debt come from short term and long term bank loans with credit facilities especially for PTPP and its subsidiaries. Interest bearing debt during 9M21 was 1.27X compared to 1.3x in 2020FY. We estimate interest bearing debt PTPP for 2022-2023 will be maintained at 1.5x
Valuation: 9% upside
We have a target price within one year of IDR 1400/share or trading at 18x PER. With 9% upside, we give our recommendation, HOLD.
As of 9M21, PTPP booked total new contracts of IDR 13,481 trillion which is 48% of their revised target of IDR 27.8 trillion. New contracts’ based on business are: Construction 56%, EPC 2%, others 2% and subsidiaries 40%. The top new contracts during 9M21 are Junction Dawuan toll road IDR 825 billion, Pegadaian Tower IDR 594 billion, Dredging benoa IDR 583 billion, The Attorney General's Building IDR 500 billion, Papua Governor's Office IDR 357 billion. Labuan Bajo Airport Building IDR 357 billion, KIT batang road phase 1.4 IDR 350 billion, Kasawan Pura Besakih Arrangement IDR 344 billion, mandalika Infrastructure phase 2 IDR 342 billion. Based on ownership, new contracts 9M21 come from SOEs 59%, Government 32%, and private 9%. To maximize the acquisition of new contracts in 2021, PTPP will focus on strategic projects owned by SOEs and Government. In 2021, PT PP has budgeted Capex of IDR 2.74 trillion, down from their earlier target. Most of the capital expenditure will be used to finance toll road development projects. We believe PTPP will see a revenue increase compared to last year. We are conservative in PTPP’s 2021 contract target but we believe PTPP’s revenue will be higher than last year. We estimate revenue CAGR during 2021-2022 of 16%.
Maintaining interest bearing debt at 1.5x
As of 9M21, PTPP debt increase means a total debt / equity ratio of 2.95x compared to 2020FY at 2.82x. Most of the new debt come from short term and long term bank loans with credit facilities especially for PTPP and its subsidiaries. Interest bearing debt during 9M21 was 1.27X compared to 1.3x in 2020FY. We estimate interest bearing debt PTPP for 2022-2023 will be maintained at 1.5x
Valuation: 9% upside
We have a target price within one year of IDR 1400/share or trading at 18x PER. With 9% upside, we give our recommendation, HOLD.
Previously
