NISP Wijaya Karya hints of 89.4% YoY growth (WIKA, Rp710)

· Wijaya Karya expects net income in 3Q10 will have reached Rp250.0bn or, or 89.4% YoY increase from Rp132.0bn in 3Q09. If realized, this means that the bank’s net income is higher by 77.5% QoQ from Rp140.8bn in 1H10 and it has achieved its full year target of Rp245.0bn.

· Although revenue in 1H10 was off target and actually contracted by 14.8% YoY to Rp2.52tn, the company’s bottom line came in line with market expectations where full year estimate is Rp272.8bn. The company has revised its full year net income target to Rp300.0bn, or 58.0% YoY increased as various operating efficiencies aided it in achieving high growth.

· WIKA is trading at 2011F consensus PER of 13.7x and EV/EBITDA of 5.1x.

NISP Berlian Laju Tanker books net loss in 2009 (BLTA, Rp710)

• Berlian Laju Tanker booked net loss of US$285.9mn, complete turn around of net profit US$218.4mn in 2008. Total revenue for 2009 was US$618.3mn or 14.6% YoY lower than US$723.7mn in 2008. Higher direct costs forced the company to book gross profit of only US$132.8mn compared to US$494.1 a year ago. The consensus call was US$630.3mn and US$6mn for sales and net income.

• While the company managed to benefit from their derivative transaction of USD149.0mn, it was revaluation costs that hit the most as decrease in asset revaluation summed up to US$227.8mn. This cost was also added with a change on fair value of convertible bonds and notes payable of US$196.4mn that weighed down on the company’s net profit. Last year, the change in fair value of convertible bonds and notes payable contributed positively to income by US$306.0mn.

• BLTA is trading at 2010F consensus PER of 11.2x and EV/EBITDA of 7.0x.