JAKARTA (TheInsiderStories) – PT PP Tbk (IDX: PTPP), an infrastructure company, will issue local bond as much as Rp1.5 trillion (US$104.89 million) local bond for its alternative funding in fulfilling company’ needs this year. In 2019, the company allocated Rp8.73 trillion capital expenditure, 28.76 percent higher than last year’ realization.
The state-owned company also planned to sell part of its ownerships in three toll road concessions, namely Pandaan – Malang toll road in East Java (35 percent), Kualanamu – Tebing Tinggi toll road (15 percent) and Kuala Tanjung Port (25 percent) in North Sumatera.
According to PTPP‘ finance director Agus Purbianto, the company expects to raise around Rp500 billion from the share sales. The funds, he said, also use for business expansion. Beside, this year, the company planned to set aside net income for reserves Rp1.2 trillion from last year has pocketed Rp16.31 trillion.
At the last shareholders meeting in May, PTPP has get approval to distributed dividend 20 percent of last year’ net income or equivalent to Rp48,452 per share for fiscal year 2018. This dividend payout ratio provides a large financial flexibility space to fund the company’ working capital from infrastructure project development, investment, and at the same time to strengthen the capital structure.
Purbianto said, in 2019, PTPP eyes new contract Rp50 trillion. in the first quarter of this year, the construction firm has bag Rp9.5 trillion of new contract such as the development of Makassar’ train depot, Makassar Pare-Patre train development project, Swissbell Hotel, smelter and other projects.
The company also eyes construction projects in Philippines and port development project in Malaysia worth of Rp2 trillion, after get project in Vietnam with worth of Rp500 billion, Purbianto added.
Recently, State Own Enterprises (SOEs) ministry aimed to establish Housing and Regional Development holding company under the control of Perusahaan Umum Pembangunan Perumahan Nasional (Perumnas). PTPP join with PT Wijaya Karya Tbk (IDX: WIKA), PT Amarta Karya, PT Bina Karya and PT Indah Karya in the new holding company.
Around 51 percent of Government-owned series B shares are transferred to state capital participation in Perumnas’ share capital, while Series A Shares remain owned by the Government. With the establishment of a holding it will increase funding capacity, capital expenditure, revenues, cost efficiency, profits and equity, said the CEO Lukman Hidayat.
Last year, PTPP booked a revenues Rp25.11 trillion or grew by 16.82 percent compared to the previous year of Rp21.50 trillion. Then, the net profit worth of Rp1.95 trillion, or rose 13.64 percent compared to the previous year of Rp1.72 trillion.
Commeting on PTPP’ performances, MNC Sekuritas analyst Rudy Setiawan assessed, the performance growth was indeed supported by its business units namely PT PP Properti Tbk (IDX: PPRO) and PT PP Presisi Tbk (IDX: PPRE), whose revenue and profits also grew.
It was recorded that PPRO obtained net profit of Rp471.25 billion, up 6 percent from the previous year. However, PP Properti’ revenue fell 5.5 percent to Rp 2.55 trillion at the end of 2018 from last year position of Rp2.7 trillion in 2017.
PP Presisi also recorded an increase in revenue of 68.01 percent over the past year to Rp 3.05 trillion. Meanwhile, the net income rose 73.35 percent to 326.42 billion. However, he reminded that this year was a challenging year for PTPP.
In the political year, Rudy saw construction entrepreneurs tending to wait and see waiting for the consolidation of the new government which would later take office.
In addition, PTPP is also still in the rotation stage of the holding process of SOEs. According to him, this could lead to a shift in the company’ internal business. Even so, he saw PTPP’ shares still attractive to be bought.
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