NISP Adhi Karya sets target of Rp8.6tn for 2010F revenue (ADHI, Rp580)

• Adhi Karya aims to post Rp8.6tn of revenue for 2010F period, 11.5% YoY higher compared to Rp7.7tn last year. The company believes this revenue will be generated from Adhi’s existing and new projects booked this year. Adhi elaborates that 63% of the revenue will be generated from infrastructure projects with the balance from building projects.

• Inline with higher revenue, the company foresees its net income will reach Rp185bn, or 11.8% YoY higher from Rp165.5bn in 2009. To support the target, Adhi plans to spend Rp82.5bn of capex this year.

• Meanwhile, as of February 2010, the company managed to secure Rp600bn of new projects.

• The company’s target is above the market expectation of Rp7.8tn on revenue and Rp140.8bn on net income.

• The company is trading at 2010F consensus PER of 7.4x and EV/EBITDA of 3.8x.