• Company said 1H10 earnings to be around Rp120bn, up 28% YoY, flat QoQ. Internal target for FY10 is Rp253bn. WIKA said usually earnings split in 1H:2H is 40:60. Consensus expects FY10’ profit of Rp266bn, higher than company’s target.
• Many tenders of government-related are now starting, as regional budgets are getting approved soon. Order book as of 5M10 reached Rp2.1tn. WIKA still targets Rp10tn this year. WIKA said this year tender is held later than last year. As of May, WIKA had participated in tenders worth Rp25tn in total. WIKA said usually the tender process for projects that are financed from government’ departmental budget is short. Now most tenders are in bidding process, hence tender winners are expected to be announced soon in a few weeks time. WIKA prefers to participate in gov projects, given more assurance of payments compared to the private sector.
• On the Tayan chemical-grade alumina project, WIKA is waiting for the formal contract appointment targeted to be announced in August. WIKA is now the first candidate, so potentially should be appointed. WIKA hopes to get 50% of the total project (US$314m) -> so about Rp1.5tn. If we add this Rp1.5tn to 5M10 order book of Rp2.1tn, the total is Rp4.4tn or almost half of their FY10 order book target of Rp10tn.
• Aiming for better margins projects. As WIKA had mentioned previously, the company now aims for higher margins projects, such as Mechanical & engineering and power plant; both can yield GP margin of 10-12%. General construction projects yield 6-8%, while building construction yields the least margin at 4-6%. WIKA said, as of 5M10
orderbook, only Rp35bn is building construction, the rest is higher margins projects. Cost-cutting initiatives are also continued such as centralized procurement. WIKA targets GP margin 2010 is 9.8%, and 11% for 2011.
• Handling bad debt. Starting 2H09, WIKA had appointed Jamdatun (Jaksa Agung Muda Perdata dan Tata Usaha Negara) or District Attorney to handle its bad debt which came mostly from non-gov projects. WIKA said there is bad debt of Rp600bn currently being handled. Total A/R in 2009 is Rp1.3tn (26% of current asset). WIKA managed to obtain Rp86bn which was claimed as bad debt previously, and had booked this in their
4Q09-1Q10 financials.
Tidak ada komentar:
Posting Komentar