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.

Pembangunan Perumahan (Persero) (PTPP IJ)

Wijaya Karya:  A Leading Infrastructure Contractor