Waskita Karya (WSKT) 1Q13 net earnings came at Rp5.4bn, a significant increase from 1Q12 net earnings of only Rp632mn. The increase in net earnings was mainly attributed by 18.8% yoy growth in revenue; 140bps gross margin improvement and 29.7% yoy decline in interest charges (as company started utilized IPO proceed). The 1Q13 achievement (1.7% of FY2013) was in line with the past 2 years figures (0.2% and 1.2% 1Q contribution in 2012 and 2011).
1Q13 revenue was at Rp957.4bn, or 18.8% yoy growth from Rp806.1bn. 1Q13 revenue achievement equals to 8.9% of FY13 revenue (consistent with the 1Q number in past two years, 9.2% and 9.8% in 2012 and 2011, respectively). We expect that the company should be able to book most part of the revenue in 2nd semester of the year as government projects are normally being tendered at that time.
1Q13 gross margin (10.3%) was improved by 140bps compared to the same period last year (FY12 and FY13 gross margin were at 8.3% and 9.1%, respectively). Margin improvement was due to company’s effort to be selective on sizeable and high margin projects .
New contract secured during 1Q13 period was Rp3.3tn (our FY2013 new contract target is at Rp12.5tn). We are comfortable with the achieved new contract and some upside may be existed as more government projects will be tendered in the 2nd half of the year.
We are currently in the process of reviewing our recommendation for the counter. WSKT is currently trading at 23.0x 2013PE and 16.9x 2014PE.
Indonesia Market Summaries, April 29 2013
Monday, April 29, 2013
Bank Negara Indonesia First Quarter 2013 Results is in line with expectations
Bank Negara Indonesia - 1Q13 results (Rp5,350Buy; TP Rp5,500)
Results in line with expectations. BNI reported Rp2.1tr net profit in 1Q13 (+34% YoY, +3% QoQ), accounting for 26% of ours and the market expectations. The results were achieved on the back of strong loan growth, high recovery of written off loans and stable provisioning charges.
23% YoY loan growth was recorded in March 2013 (19% in 1Q12) and this was particularly due to strong growth of 44% from the corporate segment, which made up 42% of the total loans compared to 35% in Mar 12. Part of the reasons of the strong growth was the migration of medium-sized loans into corporate and adjusting this additional loans, total corporate loans would have been growing at 26% YoY while the medium loans at 20%, instead of the reported -17%. In addition, consumer lending grew 29% YoY and now make up 21% of total loans compared to 20% a year earlier.
NIM improved to 5.9% in 1Q13 from 5.3% in 1Q12. The strong loan growth was not followed by the deposits which grew 10% YoY leading to rising LDR to 83% in Mar 13 from 75% in Mar 12 and 78% in Dec 12. This, coupled with stronger growth in CASA (+22% YoY, 65% of total deposits), helped improve NIM to 5.91% in 1Q13 from 5.28% in 1Q12 but it was lower than 6.0% recorded in 4Q12. Net interest income hence increased 23% YoY.
Asset quality maintained. Total NPL remained the same at 2.8% with coverage ratio of 122% after the bank wrote off some Rp736bn of bad debt. It was however, was able to recover Rp648bn of the previously written off loans, indicating improving recovery ratio of 88% from 71% in FY12. Of the segment, the small loans (
Rising cost to income due to expansion while CAR at 17.5%. Cost-income ratio was 51% in 1Q13, up from 49% in 1Q12, and this was due to expansion (number of offices increased 8% YoY and ATM 30% YoY), salary adjustment and higher annual bonus.
Maintain Buy. The counter is trading at 2.0x P/BV 2013F and has outperformed the index by 29% YTD. We will review our numbers but keep our Buy call for now with TP of Rp5,500.
Indonesia Market Summaries, April 29 2013
Results in line with expectations. BNI reported Rp2.1tr net profit in 1Q13 (+34% YoY, +3% QoQ), accounting for 26% of ours and the market expectations. The results were achieved on the back of strong loan growth, high recovery of written off loans and stable provisioning charges.
23% YoY loan growth was recorded in March 2013 (19% in 1Q12) and this was particularly due to strong growth of 44% from the corporate segment, which made up 42% of the total loans compared to 35% in Mar 12. Part of the reasons of the strong growth was the migration of medium-sized loans into corporate and adjusting this additional loans, total corporate loans would have been growing at 26% YoY while the medium loans at 20%, instead of the reported -17%. In addition, consumer lending grew 29% YoY and now make up 21% of total loans compared to 20% a year earlier.
NIM improved to 5.9% in 1Q13 from 5.3% in 1Q12. The strong loan growth was not followed by the deposits which grew 10% YoY leading to rising LDR to 83% in Mar 13 from 75% in Mar 12 and 78% in Dec 12. This, coupled with stronger growth in CASA (+22% YoY, 65% of total deposits), helped improve NIM to 5.91% in 1Q13 from 5.28% in 1Q12 but it was lower than 6.0% recorded in 4Q12. Net interest income hence increased 23% YoY.
Asset quality maintained. Total NPL remained the same at 2.8% with coverage ratio of 122% after the bank wrote off some Rp736bn of bad debt. It was however, was able to recover Rp648bn of the previously written off loans, indicating improving recovery ratio of 88% from 71% in FY12. Of the segment, the small loans (
Rising cost to income due to expansion while CAR at 17.5%. Cost-income ratio was 51% in 1Q13, up from 49% in 1Q12, and this was due to expansion (number of offices increased 8% YoY and ATM 30% YoY), salary adjustment and higher annual bonus.
Maintain Buy. The counter is trading at 2.0x P/BV 2013F and has outperformed the index by 29% YTD. We will review our numbers but keep our Buy call for now with TP of Rp5,500.
Indonesia Market Summaries, April 29 2013
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