WTON: 1Q19 Seasonal Below Expectation Still A Good Result
13 May 2019
WTON: 1Q19 Seasonal Below Expectation – Still A Good Result
WTON 1Q19 revenue and net profit only covered by 16% and 13% to our 2019 forecast which was caused by low infrastructure spending realization, 1Q19 new contract decline of 5.2% YoY and 2019 Election effect. However, the company was still able to record a good performance in 1Q19, in which the revenue and net profit increased by 8.4% YoY and 22.8% YoY, respectively. The 1Q19 gross and operating margins increased by 93 bps became to 12.4% and to 9.9%, respectively, thanks to one?stop solution of precast concrete business strategy and cost efficiency initiative. Although the recent share price increased by 48% YTD 2019 and still trading below its 5 years average fwd PER band of 15.47x, therefore, we maintain our BUY rating.
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