Adhi Karya (ADHI): LRT improvement

December 24, 2015

Jakarta Stock Exchange : Adhi Karya (ADHI): LRT improvement

Ingenicure-Architecten-en-Annemersbedrijf Associatie Selle en de Bruyn, Reyerse en de Vries NV (Associate NV) is a Dutch-claimed organization which prompted the foundation of ADHI until it was nationalized and later assigned as PN Adhi Karya on March 11, 1960. Nationalization was a trigger for hyper foundation improvement in Indonesia. In view of the endorsement of the Minister of Justice of the Republic of Indonesia, on June 1, 1974, ADHI changed its status to Limited Liability Company. Until in 2004 ADHI has turned into the first development organization recorded on the Indonesia Stock Exchange.

Status as a Limited Liability Company has urged ADHI to keep on giving the best support of all partners, both in ADHI’s advancement and Indonesia’s development industry that keeps on developing. The power of rivalry and cost wars between the development commercial enterprises made the Company rethink its vision and mission: Becoming the Renowned Construction Company in Southeast Asia. This vision depicts the inspiration of the Company to move into different business identified with the center business of the Company through a slogan that turned into the Company’s enhancer, in particular “Past Construction”?. Profitable and economical development of the Company is one of the imperative viewpoints for ADHI to keep up and to give the best to general society.

ADHI has figured out how to demonstrate its capacity as a main development organization in Southeast Asia, through intensity and demonstrated experience by running effective development ventures. ADHI couldn’t have made progress without the backing and support of general society. ADHI assumes a dynamic part in creating CSR programs and in addition the Company’s Partnership and Environmental Preservation Program.

Progress on light rail project

Following the rights issue in October, which reaped proceeds of IDR2.7tr, ADHI has started construction on its light rail transit (LRT) project. We saw the construction on the edge of the Jagorawi (Jakarta-Bogor-Ciawi) toll road. ADHI only acts as the contractor for the project. Other than LRT, ADHI has a mandate to develop the stations and other operating facilities. The LRT operator will be tendered. The project is expected to be completed in 2018-2019. Later, LRT will have six routes, with a priority route of Cibubur-Cawang to support traffic problems from residents living in greater Jakarta commuting to work in the city.

Property business development

Currently, the property business only contributes a small portion of ADHI’s total revenue. In 9M15, the property/real estate revenue contribution was only 8.3% to total revenue. Through property subsidiary PT Adhi Persada Property, ADHI is developing residential projects, including Grand Taman Melati Margonda in Depok (apartments and small office home offices [SOHO] with total gross area of 20,272m2), Grand Dhika Jatiwarna in Bekasi (mixed-use offices, mall, hotel, and apartments with total gross area of 32,293m2). ADHI also plans to develop Taman Melati Malang @ Dinoyo in East Java (apartments with gross area of 30,165m2) and Adhikapura Sunset Road Bali (condominium hotel [condotel], villas, and ballroom with gross area of 12,851m2).

New contracts in 11M15

ADHI has successfully obtained new contracts of IDR11.1tr in 11M15, exceeding the FY14 new contracts achievement of IDR9.2tr. New contracts by type were dominated by building construction (50.8%), followed by roads and bridges (33.6%), and other infrastructure (15.6%).

Indonesia Stock Exchange News
Bargain hunting on some key stocks like; SMGR INTP SMCB JPFA CPIN managed to pull the JCI back up and left its negative territory on Monday, rose by 0.5% to 4,491 after skidded away by 0.4% in the opening bell. There was 50.031mn shares worth of IDR4.6tr traded, as many of 160 stocks headed up north where 113 stocks skewed down and 87 remain unchanged. JCI were the second best performer after shanghai which booked 1.8%, among major regional stock exchange.

Our local currency appreciated against the dollar, gained 0.8% and stood at IDR13,808/dollar due to a positive sentiment among local investors.

Bullish signal on MA(5,20) with a golden cross at 61.2 overbought stochastic, signaling that there still more room for JCI to close the resistance gap level at 4,510-4,515 before the Christmas eve. JCI expected to trade at 4,450-4,520. A downside three-method gap on SMGR, piercing line after a deliberation bullish candle at UNTR indicates a bullish continuation still in tag and drive the Indonesia benchmark index entering the 4,500s.

Economy: Government Announces Eighth Economic Package with Focus on One Map Policy, Oil and Gas, Aviation.

The Indonesian government unveiled its eight set of stimulus packages, highlighting a map policy to streamline land-acquisition for infrastructure development and two other policies to spur growth in oil and gas and the aviation sectors. A national level effort orchestrated by the government, local administrations and other government bodies will harmonize all maps in the archipelago nation under one reference map which will use the 1:50,000 scale. The policies include opening up oil refineries to private sectors outside of the state energy giant Pertamina. The government is also working to deregulate the process of sending spare parts into Indonesia in an effort to bolster the aviation industry. (Jakarta Globe)

ADRO: Adaro will distribute interim dividend of USD35.18 million.

PT Adaro Energy Tbk (ADRO) plans to distribute an interim dividend for the financial year 2015 amounted to USD35.18 million to holders of 31.98 billion shares on January 15, 2016. The dividend equivalent to USD0.00110 per share. “Board of Directors and Commissioners on December 17, 2015 has decided and approved the distribution of the interim dividend. Dividends derived from net income in third quarter of 2015, “said Adaro Energy’s Management. (BeritaSatu)

WSKT: Waskita injects capital for Waskita Toll Road IDR 519 billion.

State-owned construction companies PT Waskita Karya Tbk (WSKT) injects capital of its subsidiary PT Waskita Toll Road (WTR). Company injects capital amounting to IDR 519 billion. Corporate Secretary WSKT, Shastia Hadiarti said, with the additional capital, WTR authorized capital increased to IDR 6.5 trillion. Company’s ownership in WTR reached 99.9%,” she said. (Kontan)

TOTL: Total Persada Working On Cinema in Serpong.

PT Total Bangun Persada Tbk (TOTL) just won new contracts worth IDR 90 billion for theater development projects in Serpong, South Tangerang. “Cinema which has an area of about 24,400 square meters is already in the process of development,” said Corporate Secretary Total Persada Mahmilan Sugiyo. (BeritaSatu)

BKSL: Sentul City targeting fresh fund of IDR 235 billion.

Funding its business expansion next year, property company PT Sentul City Tbk (BKSL) is planning to carry out corporate action to get an additional capital through the issuance of new shares without Preemptive Rights (HMETD). Independent Director Sentul City, Widi Widananto said the private placement will conducted by issuing shares of series D as much as 3.139 billion, with the nominal value of IDR50 per share and offering price of IDR 75 per share. (Okezone)

MEDC: Medco Complete Acquisition of Api Metra USD166.8 million.

PT Medco Energi Internasional Tbk (MEDC) and its subsidiary, PT Medco Energi Nusantara, has completed the purchase of 51% shares of PT Api Metra Graha (AMG), the owner of an office building The Energy in SCBD, South Jakarta. Transaction value reached USD 166.84 million. Medco has signed an agreement for the sale and purchase of shares of AMG on December 17, 2015. The Company bought the shares fron Jaden Holdings Ltd and Jaden Investment Inc. (BeritaSatu)

SGRO: Sampoerna Agro continues to expand.

Although the price of crude palm oil (CPO) is still low, PT Sampoerna Agro Tbk (SGRO) continue to prepare a number of expansion in 2016. In addition to the palm oil fields, the company will build a new palm oil mill. “The development of oil fields will be much focused in Kalimantan especially West Kalimantan,” said Michael Kesuma, Head of Investor Relations SGRO. (Kontan)

Ref: KDB Daewoo Securities Indonesia Research

Category: Jakarta Stock Exchange

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