RISET FR CIMB 27 MEI 2013

RISET FR CIMB 27 MEI 2013 :

1.Construction   | Another rally building up
OVERWEIGHT - Maintained
Author(s): Lydia TOISUTA, Linda LAUWIRA 

A regional independent surveyor has suggested that Indonesia's construction sector is set for a blistering 39% growth in contracts for FY13, much faster than the 14% CAGR in 2011-13. This reinforces our belief that there are as many jobs available as contractors can execute. Any downside to earnings estimates is limited as cost overrun risk is low and multi-year contracts are bound for annual renegotiation. Meanwhile, there is upside potential in new contracts from both the private sector and, particularly, public sector, with the higher chance of a fuel subsidy cut. We keep our Overweight call, with PTPP as our top pick.

SECTOR COMPARISONS :

1.ADHI- NEUTRAL-TP 3,300
2.PTPP - OUTPERFORM-TP 1,800
3.TOTL - OUTPERFORM-TP 1,350
4.WIKA - OUTPERFORM-TP 2,850


VENTURING OUT OF CONSTRUCTION :
1.ADHI,
EXPANSION IN 2013F
-Precast Concrete : Capacity of 130,000mt.pa
-Public Transportation : monorail from satellite city to city centre
-Hospitality : Grand Dhika Hotel in Blok M

2.PTPP
EXPANSION IN 2013F
-Strategic Investment in Toll Roads : 6 inner city toll road
-Strategic Investment in Power Plants : Micro hydro power plant 10MW
-Hospitality : Hotel in Makassar and Bali
-Precast Concrete : Capacity of 270,000mt.pa

3.WIKA
EXPANSION IN 2013F
-Strategic Investment In Toll Roads : Surabaya-Mojokerto toll roads, Kuncirang-Cengkareng toll
roads, 6 inner city toll roads
-Strategic Investment In Power Plants : Geothermal power plant
-Strategic Investment In A Asphalt Business : Buton asphalt factory

(24 MEI 2013)