WSKT
Contact our analyst Revita
69% Upside, Buy
25th November, 2020
Current price Rp1025
Target price Rp1820
25th November, 2020
Current price Rp1025
Target price Rp1820
45% of contract target booked
WSKT booked new contracts in 9M20 of IDR 12,2 trillion, 45% of the 2020F target of IDR. 26,8 trillion. Most of the new contracts, 49%, are from business development, 20% from Government, 27% from SOE and 13% from private projects. The largest contribution to the 3Q20 new orders is still toll road projects namely Pasuruan – Probolinggo section 4 toll road (IDR.1,7 Tn) and Bogor – Ciawi – Sukabumi section 3 and 4 toll road (IDR.3,3 Tn), Jakarta- Cikampek South Package 3 toll road (IDR.689 Bn), followed by non-toll road projects namely Jragung Dam package 1 (IDR.733 Bn) and Irrigation Network D.I Rentang (IDR.553 Bn). The implementation of PSBB phase 2 during the month of September to October has not affected the progress of the projects which to date has reached almost 100%. We revise our 2020 revenue target based on the 9M20 results and burn rate, to IDR.16,8 trillion.
Transaction progress update
WSKT through its subsidiary PT Waskita Toll Road (WTR) has signed a Conditional Sales and Purchase Agreement (CSPA) for the sale of shares amounting to IDR.550 Bn or 30% of WTR’s ownership in PT Kresna Kusuma Dyandra Marga (KKDM) through equity based instrument namely RDPT. KKDM owns the Bekasi – Cawang – Kampung Melayu toll road concession (16 km) which has began partial operation for sections 1A, 1B and 1C. Based on this transaction, WSKT will be able to reduce consolidated debt by IDR.6,5 Tn
Maintaining business sustainability
Going forward, WSKT has potential new business in the next few years of +/- IDR. 92 trillion. The potential new business includes projects in Java, namely infrastructure, connectivity, and piping worth IDR.49 trillion. Plus potential projects in East Kalimantan and Sulawesi for connectivity infrastructure and EPC which are worth IDR.20 trillion. A subsidiary of PT Waskita Realty, Waskita Modern Realty (West Java) in partnership with Modern Land Group will develop an area of 600 hectares. In addition WSKT which is incorporated in the consortium together with other SOEs, namely Jasa Marga, Adhi Karya, Housing Development, and Brantas Abipraya is also planning to sign the Yogyakarta - Bawen Toll Road Business Agreement. The 75.8 KM toll road project has an investment value of +/- IDR.14 Trillion
Valuation: 69% upside
We have a Target price of IDR.1820/share or trading at 24,75X PER. With 69% upside, we recommend BUY.
WSKT booked new contracts in 9M20 of IDR 12,2 trillion, 45% of the 2020F target of IDR. 26,8 trillion. Most of the new contracts, 49%, are from business development, 20% from Government, 27% from SOE and 13% from private projects. The largest contribution to the 3Q20 new orders is still toll road projects namely Pasuruan – Probolinggo section 4 toll road (IDR.1,7 Tn) and Bogor – Ciawi – Sukabumi section 3 and 4 toll road (IDR.3,3 Tn), Jakarta- Cikampek South Package 3 toll road (IDR.689 Bn), followed by non-toll road projects namely Jragung Dam package 1 (IDR.733 Bn) and Irrigation Network D.I Rentang (IDR.553 Bn). The implementation of PSBB phase 2 during the month of September to October has not affected the progress of the projects which to date has reached almost 100%. We revise our 2020 revenue target based on the 9M20 results and burn rate, to IDR.16,8 trillion.
Transaction progress update
WSKT through its subsidiary PT Waskita Toll Road (WTR) has signed a Conditional Sales and Purchase Agreement (CSPA) for the sale of shares amounting to IDR.550 Bn or 30% of WTR’s ownership in PT Kresna Kusuma Dyandra Marga (KKDM) through equity based instrument namely RDPT. KKDM owns the Bekasi – Cawang – Kampung Melayu toll road concession (16 km) which has began partial operation for sections 1A, 1B and 1C. Based on this transaction, WSKT will be able to reduce consolidated debt by IDR.6,5 Tn
Maintaining business sustainability
Going forward, WSKT has potential new business in the next few years of +/- IDR. 92 trillion. The potential new business includes projects in Java, namely infrastructure, connectivity, and piping worth IDR.49 trillion. Plus potential projects in East Kalimantan and Sulawesi for connectivity infrastructure and EPC which are worth IDR.20 trillion. A subsidiary of PT Waskita Realty, Waskita Modern Realty (West Java) in partnership with Modern Land Group will develop an area of 600 hectares. In addition WSKT which is incorporated in the consortium together with other SOEs, namely Jasa Marga, Adhi Karya, Housing Development, and Brantas Abipraya is also planning to sign the Yogyakarta - Bawen Toll Road Business Agreement. The 75.8 KM toll road project has an investment value of +/- IDR.14 Trillion
Valuation: 69% upside
We have a Target price of IDR.1820/share or trading at 24,75X PER. With 69% upside, we recommend BUY.
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