Wijaya Karya (WIKA) – Upgrade to BUY
Price: Rp670 - Target Price: Rp860
In-line FY10 Bottom Line
- WIKA’s FY10 earnings surged by 51% YoY while revenue fell by 9% YoY.
- Strong 4Q10 with revenue and earnings surged by 45% and 28% Q0Q.
- Net profit came in-line while revenue only accounted for 75% of our estimate.
- Strong 4Q10 result on the back of swift disbursement on government project.
- Balance sheet remains strong with net cash position of Rp865bn in FY10.
- We raised our earnings forecast by 10-29% on lower tax rate and higher margin.
- New target price of Rp860, offers 28% upside. Upgrade to BUY.
- Wijaya Karya (WIKA) 31 march 2011 (190.4 KiB)