ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

PT Wijaya Karya (Persero) Tbk / Equity Bottom-Up

<ul><li><a href="https://www.smartkarma.com/entities/1877" target="_blank" data-smartkarma-citation="entities:1877:1">Wijaya Karya Persero Tbk Pt (WIKA IJ)</a> has proven that it can win high profile infrastructure projects (Jakarta-Bandung High Speed Railway more recently).</li><li>A conference call with the IR reveals that infrastructure projects execution under Jokowi's administration progresses better.</li><li>The weak spot we find is that WIKA's operating cash flows turned big negative, owing to turnkey projects increasingly demanded by project owners.</li><li>Valuation-wise, WIKA trades at an inexpensive 10.1x 2018 PE.</li></ul>

Wijaya Karya Persero Tbk Pt (WIKA IJ) has proven that it can win high profile infrastructure projects (Jakarta-Bandung High Speed Railway more recently).A conference call with the IR reveals that infrastructure projects execution under Jokowi's administration progresses better.The weak spot we find is that WIKA's operating cash flows turned big negative, owing to turnkey projects increasingly demanded by project owners.Valuation-wise, WIKA trades at an inexpensive 10.1x 2018 PE.

Wijaya Karya:  A Leading Infrastructure Contractor

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Thematic (Sector/Industry)

I spent the second half of last week in Jakarta and Surabaya, kicking the tires and walking the tiles on the two cities, with a visit to <a href="https://www.smartkarma.com/entities/17042" target="_blank" data-smartkarma-citation="entities:17042:1">Arwana Citramulia Tbk Pt (ARNA IJ)</a>'s new plant near Surabaya. In Jakarta, one of the highlights was filter maker <a href="https://www.smartkarma.com/entities/10909" target="_blank" data-smartkarma-citation="entities:10909:1">Selamat Sempurna Pt (SMSM IJ)</a>, which is back on track in 1Q17, after a slower year in 2016. For more detail on these visits, please scroll down. <h2>Top Insights of the week in ASEAN</h2>In <a href="https://www.smartkarma.com/insights/bullish-rally-base-for-new-highs" target="_blank" data-smartkarma-citation="insights:10300">Bullish Rally Base for New Highs</a>, <a href="https://www.smartkarma.com/profiles/381" target="_blank" data-smartkarma-citation="accounts:381">Thomas Schroeder</a> highlights…

I spent the second half of last week in Jakarta and Surabaya, kicking the tires and walking the tiles on the two cities, with a visit to Arwana Citramulia Tbk Pt (ARNA IJ)'s new plant near Surabaya. In Jakarta, one of the highlights was filter maker Selamat Sempurna Pt (SMSM IJ), which is back on track in 1Q17, after a slower year in 2016. For more detail on these visits, please scroll down. Top Insights of the week in ASEANIn Bullish Rally Base for New Highs, Thomas Schroeder highlights…

The Week that Was in ASEAN@Smartkarma - Filters, Construction And Shipping

Ex - Analyst at PE and Indonesia Brokerage Firm

Surabhi Chopra

<a href="https://www.smartkarma.com/entities/1877" target="_blank" data-smartkarma-citation="entities:1877:1">Wijaya Karya Persero Tbk Pt (WIKA IJ)</a>, a construction company in Indonesia, reported a very strong 1Q17 as its revenues increased nearly 40% yoy led by strong growth in infrastructure and building business, gross profit +41% yoy while EBIT was up about 44% yoy and net profit +242% yoy. Net profit beat consensus forecasts as usually due to seasonality 1Q17 make up about 14-15% of full year estimates but 1Q17 made up about 20% of consensus full year estimates. The strong growth in net profit…

Wijaya Karya Persero Tbk Pt (WIKA IJ), a construction company in Indonesia, reported a very strong 1Q17 as its revenues increased nearly 40% yoy led by strong growth in infrastructure and building business, gross profit +41% yoy while EBIT was up about 44% yoy and net profit +242% yoy. Net profit beat consensus forecasts as usually due to seasonality 1Q17 make up about 14-15% of full year estimates but 1Q17 made up about 20% of consensus full year estimates. The strong growth in net profit…

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…
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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…



SGX's MOE Sector Sustains 4Q16 Momentum into 2017

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

<ul><li>Low correlation with Western stock markets, strong price momentum, and relatively strong analyst recommendation relative to its sector</li><li>As one of  Indonesia’s top-three building contractors ranked by revenue, and a state-owned enterprise (SOE), WIKA is particularly well placed to get orders for major infrastructure projects to be rolled out through 2019</li><li>The recently announced tax amnesty should boost funding, which had been delayed for this year’s biggest ever infrastructure budget, and support the high-speed rail project, a key order for WIKA</li><li>Trades above ASEAN Capital Goods at 16CE* 26.2x PE, but offers good growth in a sector that is expected to contract</li><li>Risk: Further delay in government tenders for construction projects</li></ul>* Consensus Estimates

Low correlation with Western stock markets, strong price momentum, and relatively strong analyst recommendation relative to its sectorAs one of  Indonesia’s top-three building contractors ranked by revenue, and a state-owned enterprise (SOE), WIKA is particularly well placed to get orders for major infrastructure projects to be rolled out through 2019The recently announced tax amnesty should boost funding, which had been delayed for this year’s biggest ever infrastructure budget, and support the high-speed rail project, a key order for WIKATrades above ASEAN Capital Goods at 16CE* 26.2x PE, but offers good growth in a sector that is expected to contractRisk: Further delay in government tenders for construction projects* Consensus Estimates

WIKA: SOE Contractor to Benefit from Tax Amnesty

Indonesia

PT Wijaya Karya (Persero) Tbk. (WIKA:IJ) one of the largest listed state-owned engineering, procurement and construction (“EPC”) companies in Indonesia with diversified construction projects was established In 1960 under the name Perusahaan Negara Bangunan Widjaja Karja.

WIKA have four business segments: Industry, Infrastructure & Building, Energy & Industrial Plant, and Realty & Property, Through these segments, we have successfully undertaken key national infrastructure projects including Balikpapan-Samarinda Toll Road, Semanggi Interchange, Jatigede Dam, Soekarno-Hatta Airport Terminal 3, Ngurah Rai Airport and the Suramadu Bridge, Serang-Panimbang Toll Road and Jakarta-Bandung High Speed Railway.

As of December 2021, WIKA is owned by the Government as to 65,05% and by public shareholders as to 34,95%, with market capitalization IDR9,91 Trillion and total order book IDR88,12 trillion

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PT Wijaya Karya (Persero) Tbk (WIKA IJ)

Wijaya Karya: A Leading Infrastructure Contractor

Wijaya Karya Persero Tbk Pt (WIKA IJ) has proven that it can win high profile infrastructure projects (Jakarta-Bandung High Speed Railway more...

Johannes Salim, CFA

The Week that Was in ASEAN@Smartkarma - Filters, Construction And Shipping

I spent the second half of last week in Jakarta and Surabaya, kicking the tires and walking the tiles on the two cities, with a visit to Arwana...

Angus Mackintosh

WIKA: Strong 1Q17

Wijaya Karya Persero Tbk Pt (WIKA IJ), a construction company in Indonesia, reported a very strong 1Q17 as its revenues increased nearly 40% yoy...

Surabhi Chopra

SGX's MOE Sector Sustains 4Q16 Momentum into 2017

§ The SGX Maritime & Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in...

Singapore Exchange Ltd (SGX)

WIKA: SOE Contractor to Benefit from Tax Amnesty

Low correlation with Western stock markets, strong price momentum, and relatively strong analyst recommendation relative to its sector As one of ...

A. Stotz Investment Research

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