PTPP
Contact our analyst Revita
84% upside. Buy
2nd November 2022
Price Rp890
Target price Rp1645
2nd November 2022
Price Rp890
Target price Rp1645
IDR 17,583 trillion new contracts
As of 10M22, PTPP has booked total new contracts of IDR 17.6 trillion which consist of IDR 1.5 trillion of IKN new contracts and IDR 16.1 trillion of non IKN new contracts. Total new contract as of 3Q22 are up 23% from 3Q21’s IDR 13.5 trillion. New contracts in 3Q22 based on business category are: Construction 85%, property & Realty 8%, EPC 5%, others 2%. Based on ownership, new contracts come from SOEs 60%, Government 35%, and private 5%. To maximize the acquisition of new contracts in 2022, PTPP will focus on strategic projects owned by SOEs and the Government. PTPP is targeting the share of new contracts from SOEs at 48% and Government 44%. In 2022, PTPP has budgeted Capex of IDR 4.375 trillion, an increase of 37.19% from 2021. Top 3 new contracts during 3Q22 include Patimban phase 2, IDR 823,18 billion, Pertamedika Sanur Bali Hospital IDR 621.62 billion, Darmais Hospital IDR 427.36 billion. During 1H22, PTPP has already spent IDR 1.89 trillion, mostly (64%) for subsidiaries, inline with the plan to use most of this year’s capital expenditure for subsidiaries’ projects. We maintain our target for PTPP’s 2022 new contracts but believe that revenue will be higher than last year supported by carry over contracts as well as the increase in new contracts. We maintain our CAGR revenue growth forecast during 2021A – 2023F of 17.9%.
Maintaining debt to equity at 1.43x
As of 1H22, PTPP debt / equity ratio was 1.34X. Most of the debt came from short term and long term bank loans and credit facilities for PTPP and its subsidiaries. PTPP has anticipated interest rate hikes by focusing on debt with a fixed interest rate. PTPP plans to divest toll roads starting in 2025 for long-term debt reduction. We maintain our estimation for PTPP interest bearing debt / equity for 2022-2023 at an average of 1.43x
Valuation: 84% upside
We maintain our target price within one year of IDR 1,645/share or trading at 23x PER. With 84% upside, we maintain our recommendation, BUY.
As of 10M22, PTPP has booked total new contracts of IDR 17.6 trillion which consist of IDR 1.5 trillion of IKN new contracts and IDR 16.1 trillion of non IKN new contracts. Total new contract as of 3Q22 are up 23% from 3Q21’s IDR 13.5 trillion. New contracts in 3Q22 based on business category are: Construction 85%, property & Realty 8%, EPC 5%, others 2%. Based on ownership, new contracts come from SOEs 60%, Government 35%, and private 5%. To maximize the acquisition of new contracts in 2022, PTPP will focus on strategic projects owned by SOEs and the Government. PTPP is targeting the share of new contracts from SOEs at 48% and Government 44%. In 2022, PTPP has budgeted Capex of IDR 4.375 trillion, an increase of 37.19% from 2021. Top 3 new contracts during 3Q22 include Patimban phase 2, IDR 823,18 billion, Pertamedika Sanur Bali Hospital IDR 621.62 billion, Darmais Hospital IDR 427.36 billion. During 1H22, PTPP has already spent IDR 1.89 trillion, mostly (64%) for subsidiaries, inline with the plan to use most of this year’s capital expenditure for subsidiaries’ projects. We maintain our target for PTPP’s 2022 new contracts but believe that revenue will be higher than last year supported by carry over contracts as well as the increase in new contracts. We maintain our CAGR revenue growth forecast during 2021A – 2023F of 17.9%.
Maintaining debt to equity at 1.43x
As of 1H22, PTPP debt / equity ratio was 1.34X. Most of the debt came from short term and long term bank loans and credit facilities for PTPP and its subsidiaries. PTPP has anticipated interest rate hikes by focusing on debt with a fixed interest rate. PTPP plans to divest toll roads starting in 2025 for long-term debt reduction. We maintain our estimation for PTPP interest bearing debt / equity for 2022-2023 at an average of 1.43x
Valuation: 84% upside
We maintain our target price within one year of IDR 1,645/share or trading at 23x PER. With 84% upside, we maintain our recommendation, BUY.
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