WTON

Contact our analyst Revita

Targeting Market Share, BUY
7th December 2017
Current price Rp510
Target price Rp775

Strong order book

As of 9M17, WTON managed to book new contracts of IDR. 4,196 trillion with a total order book totaling IDR. 8,2 trillion up 78% yoy or
74% of the total order book target for 2017 of 10,96 trillion. New contracts mainly came from non WIKA at 72%,

Targeting more market share

WTON plans to capture more market share in future by increasing production capacity to 3 mn tons in 2017 and 3,3 million tons in 2018F.
WTON will also capture market share in precast for landed houses and apartments through its JV company called WIKA Pracetak Gedung.
WTON continues to develop and innovate in precast products in order to be ahead of its peers. For example, in boxgirder WTON is able to develop with diameter above its peers, in Immer Bore units, WTON is the only one who is using Inner BoreTechnology in Indonesia, and a new area, floating dock precast for ports.

Valuation: 52% upside

Based on DCF with WACC 9.5%. we are targeting a target price within one year of IDR. 775/shares or trading at 17.1 PER,.
This gives 52% upside compared to the latest closed price. BUY