Adhi Karya Tbk (ADHI)’s new contract acquisition in January to July 2016 just reached 9 trillion IDR or 36% from a target of 25 trillion IDR. ADHI’s contract was hampered by the delaying tenders from many government projects. The company will not revise the new contract target because they are convinced that the contract acquisition would be better in the second term 2016.
Some of the contracts are delayed because of the unresolved legal administration, for example, the establishment of Bukit Asam Tbk (PTBA) and Terminal 3 Bandara Soekarno Hatta (Soekarno Hatta Airport). It causes ADHI’s revenue to drop by 2.5% of year-on-year to 3.1 trillion IDR on the first term of 2016. The company predicts that it will get irrigation projects in Java, Sumedang toll road, and Light Rail Transit (LRT) worth 17 trillion IDR on the second term of 2016.
Rendy Candra, an Analyst at Lautandhana Sekurindo, said that based on the sensitivity analysis which considered the acquisition of the new contract of 17 trillion IDR, there will an upside potential by 39.9%. The tax amnesty policy, LRT project, and the acceleration of many government projects will be a catalyst for ADHI on the third quarter of 2016.
Lautandhana recommended Buy for ADHI with a target price of 3.350 IDR. On Tuesday (9/8), ADHI’s share made stagnant transactions by 2.790 IDR. (*)
| Adhi Karya Tbk Performance | |||
| In billion rupiah | |||
| Notes | H1 2016 | H1 2015 | Changes |
| Revenue | 3.170,79 | 3.212,03 | Down |
| Cost of Revenue | 2.862,9 | 2.887,13 | Down |
| Profit | 223,88 | 229,44 | Down |
| EBITDA | 238,5 | 244,2 | Down |
| Net Profit | 55,77 | 70,72 | Down |
| EPS | 15,43 | 39,13 | Down |
| ROA | 0,32% | 0,61% | Down |
| ROE | 1,08% | 4,36% | Down |
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