WIKA – Downgrade to Hold
Price: Rp590 – Target Price: Rp550
Operational Came Below Expectation
- Revenue fell by 15% YoY to Rp2.52tn.
- Bottom line grew by 51% YoY to Rp141bn.
- 1H10 operational result came below expectation .
- Lower revenue due to slower than expected government’s infrastructure budget disbursement.
- Has rallied for 93.6% over the past 3 month, outperforming its sector indices and peers by 80% and 40%.
- Trading at ‘10F PER of 13.4x, WIKA looks expensive. Downgrade to HOLD.