Adhi Karya (ADHI) - Weak Top Line

Adhi Karya (ADHI) – Maintain HOLD
Price: Rp970 – Target Price: Rp1,040

Weak Top Line

  • ADHI’s 9M10 revenue dropped by 37% YoY while net profit grew by 18% YoY.
  • While on QoQ, revenue slightly up by 3.1% QoQ and net profit shed by 9.2% QoQ.
  • ADHI’s 9M10 revenue and EBIT below expectation, accounted for only 39% of FY estimate.
  • Improved QoQ performance as several projects starts to show progress.
  • Margins improved across the board on cost efficiency and lower tax.
  • Cut our ‘10F-‘12F contract by 3-21%, earnings move higher by 46%-76% on higher margin.
  • New TP at Rp1,040, offering only 7.4% upside. Maintain Hold.
Download
  1. Adhi Karya (ADHI) 8 November 2010 (249.5 KiB)