WSKT: Pursuit of A Stellar Earnings Growth, TP 3.300
19 Nov 2017
WSKT managed to book stellar earning’s growth of 175.2% YoY in 9M17 and beat ourFY17 estimate of Rp2.4 trillionby 6.1%. Net revenue grew by 103.7% YoY to Rp28.5 trillion thanks to Terbanggibesar - KayuAgung, Jakarta - Cikampek, Cibitung - Cilincing, Cinere - Serpong toll road projects. Furthermore, GPM grew by 248 bps YoY to 19.8% mostly due to increasing profitability in precast business from 24% in 9M16 to 27% in 9M17 as the result of precast sales in LRT Palembang project. As of 9M17, it has secured Rp44.5 trillion of new contract and accounting for 74.2% of its new contract target in 2017F of Rp60 trillion. Hence, we maintain our BUY call to the stock with target price at Rp3,300/share.
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