Sunday, January 14, 2018

Indonesia > Stock Picks of the Week (January 15 - January 19): KRAS.JK, BUMI.JK, PPRE.JK, PTSN.JK, GMFI.JK, WSKT.JK, WEGE.JK


Krakatau Steel (KRAS.JK)
  • The Indonesia's largest integrated steel company
  • Undervalued and oversold stock.
  • Production output in 2018 estimated reach 7,15 million tonnes
  • Krakatau Steel's projects worth US$ 1.28 billion will operate in the next two years - IDNFinancials.
  • The price of reference HRC CFR domestic in December 2017 has reached US $562 per metric ton rise sharply 260% from December 2015 which only reached US $216 per metric ton.
  • The Chinese government plans to reduce steel production 100 — 150 million tons in the next five years also provides a positive sentiment for strengthening global steel prices.
  • Until September 2017, KRAS recorded revenue $1.04 billion, up 5.87% compared to the same period last year.
  • The cash flow until September 2017, 499.71% to US $121,13 million from US $21.20 million in the same period last year.
  • Net loss to US $75,05 million, or decline from  losses in the previous year which amounted to US $114,7 million.
  • Bullish trend.
See Also: ArcelorMittal (MT)

Bumi Resouces (BUMI.JK)
  • Undervalued and oversold stock.
  • The company is targeting revenues of about $5.5 billion in 2018 from coal sales that exceeded 90 million tons per year.
  • PT Bumi Resources has a receivable with a value that is large enough, reaching more than Rp 4 trillion or US $367.55 million. The accounts receivable comes from PT Tiga Lima Rekso.
  • Market cap only USD 1,29 billion (debt USD 1,6 billion) meanwhile the company have 2.2 billion metric tonnes of marketable coal reserves worth USD 229 billion and 12.4 billion metric tonnes of coal resources worth USD 1,116 trillion.

PP Presisi (PPRE.JK)
  • Largest heavy equipment rental company in Indonesia (Having 1,500 heavy equipments inventory)
  • Undervalued and oversold.
  • New contracts per 15 Desember 2017 reached Rp 5,9 trilllion or 102% from target (5,8 trillion)
  • Bullish trend.
See Also: United Rentals

Sat Nusapersada (PTSN.JK)
  • Manufacturer of Printed Circuit Board (PCB) and mechanical part assembly for multinational industries, such as Xiaomi and Nokia.
  • Undervalued and oversold.
  • Indicate a strong trend
See Also: TTM Technologies

GMF Aero Asia (GMFI.JK)
  • The best and biggest aircraft maintenance companies in the ASEAN.
  • Undervalued and oversold.
  • Signed Strategic Partnership with KORR Group for worldwide footprint in Australia. This cooperation includes maintenance for 4 aircraft types, i.e. Boeing 737, Boeing 787, Airbus A320 and Airbus A330. The work area is done in the Melbourne, Sydney and Perth.
  • Doing business expansion to the Middle East in 2018.
  • Capital expenditures (Capex) in 2018 to US $100 million
  • GMF Aero Asia continues to expand their business worldwide to become one of 10 largest MRO companies in the world.
See Also: AAR Corp

Waskita Karya (WSKT.JK)
  • Waskita karya ensure two new toll roads in Java will operate in 2018. The first is a Pejagan-Pemalang Sections III and IV toll road with a total length of 57.5 kilometres. PT Waskita Toll Road (a subsidiary of PT Waskita Karya) is the toll concession holder. The second is a Pemalang-Batang toll road with total length of 39.2 kilometers. Shareholders comprising PT Waskita Toll Road 60 percent and PT Sumber Mitra Jaya 40 percent.
  • Waskita Karya (WSKT) note that receivable from Palembang LRT Projects amounting to Rp 9,1 Trillion unpaid by the Indonesia Government. The receivable were not including interest from the payment delay.
  • Cash flow be positive because since the quarter IV-2017 corporations began to receive payments from the Government.
See Also: Vinci SA

Wijaya Karya Bangunan Gedung (WEGE.JK)
  • PT Wijaya Karya Bangunan gedung Tbk (WEGE) predict (forecast) would gain contracts amounted to Rp16,59 trillion in 2018, or rose by 28.4% from the target year of 2017. This contract consists of the new contract year 2018 target amounting to Rp 7,83 trillion and carry over year 2017 amounting to Rp 8,76 trillion.
  • WIKA Building sales target Rp 5,19 trillion or rose 28.8% of the target for the year 2017 Rp4,03 trillion. In 2018 year expected net profit to Rp 394,5 billion or jump 38% from the year 2017 of Rp 285,8 billion and for CAPEX 2018 amounting to Rp 667 billion.
  • The company's operating cash flow was recorded per November 2017 amounting to Rp 192 billion and projected per 31 December 2017 reached over Rp 240 billion.


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