PP Tbk (PTPP)’s business expansion to energy sector by establishing PP Energi’s subsidiaries is predicted to raise PTPP’s order book by 20% per year until 2018. PTPP’s subsidiaries will seize an opportunity to build 35GW electricity project which is the government’s priority.
PP Energi joined tender for several Thermal Power Station project at Batam and Kamojang and also Gas Power Plant at Gorontalo with total capacity of 270MW. PP Energi is targeting to build a power plant with total capacity of 1,2GW next year and 4GW in the next 3-4 years. Until July 2016, total of PTPP’s contract reached 53,14 trillion IDR.
Michael Ramba, an Analyst from BCA Sekuritas, said that PTPP will get 4,4 trillion IDR from rights issue this year. “The rights issue fund increases PTPP’s leverage to seek loans until 12,8 trillion IDR to fund the priority projects, such as power plant at Meulaboh, the toll road construction in Java, Sulawesi, and Borneo,” said Michael.
BCA Sekuritas recommended BUY for PTPP with a target price of 5.600 IDR. In trading on Wednesday (31/8), PTPP’s share increased by 0,23% to 4.310 IDR. (*)
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