JAKARTA (TheInsiderStories) - A number of state-owned construction firms will continue to expand in 2017 as part of their move to support the government’s drive to accelerate infrastructure development in the country. Among companies that have set expansion program are including PT Wijaya karya Tbk (IDX:WIKA), PT Waskita Karya Tbk (IDX: WSKT), PT Jasa Marga Tbk (IDX:JSMR), PT Pembangunan Perumahan Tbk (IDX:PTPP) and PT Hutama Karya.
PT Wijaya Karya Tbk (WIKA) has directed its expansion program to support the government’s plan to develop Special Economic Zone (SEZ) such as SEZ Makassar in South Sulawesi as well as SEZ Bitung. The company will also develop transportation integrated projects such as toll road, Mass Rapid Transport (MRT), Light Rapid Transport (LRT), ports, airports, as well as energy, water and property sectors’ project.
Finance Director of WIKA Steve Kosasih said the company targets to secure contracts of Rp43 trillion this year, Rp14.5 trillion of which have been secured in March. To support its ambitious program, Wijaya Karya has set aside Rp7 trillion to fund its capital expenditure (capex) this year.
It also sets sales target of Rp36.74 trillion, more than double from 2016 of Rp15.67 trillion and net profit of Rp1.28 trillion, up from Rp1.01 trillion in 2016. As for 2016, WIKA distributed dividend of Rp333.386 per share or a total of Rp303.55 billion, representing 30% of its 2016 net profit of Rp1.01 trillion.
Waskita Karya
PT Waskita Karya Tbk has said it targets to develop 840 km of toll roads this year, which will be developd by its unit PT Waskita Toll Road. At present, Waskita is developing 17 toll road sections with a length of 960.2 km with total investment of Rp113 trillion. Two sections of the toll road have entered operation stage, namely Kanci-Pejagan toll road section (35 km) and Pejagan-Pemalang toll road, section 1 and 2 (20.20 km.
President Director of Waskita Karya M. Cholig said once the construction of the existing projects are completed, Waskita will operate up to 1,839 km of toll roads by 2019.
At present, Waskita is also taking part in a tender to develop 194 km of toll roads. It is also requesting the government’s toll road regulator BPJT to develop toll road on its owned initiative with a length of 378 km as well as acquire 219 km of toll roads.
Waskita has set aside capital expenditure of Rp 32 trillion for this year that will be used to fund its ongoing projects. To support the funding, Waskita plans to issue bonds worth Rp10 trillion in second half of 2017. Waskita also plans to issue new shares (rights issue), the proceeds of which will be used to inject additional capital to its subsidiary PT Waskita Toll Road amounting to Rp8 trillion.
Recently, Waskita’s annual shareholders meeting approved the board’s plan to allocate dividend of Rp37.87 per share or a total of Rp513 billion, representing 30% of Waskita’s 2016 net profit of Rp1.71 trillion.
Hutama Karya
Another state-owned construction company PT Hutama Karya expects a 63.6 percent increase in sales to Rp 18 trillion in 2017 from projected sales of Rp 11 trillion in 2016, said President director I Gusti Ngurah Putra. The company is expected the completion of two sections of the trans-Sumatra toll road to be the main contributor to the company’s sales in this year.
Based on Government Regulation No.117/2015, Hutama Karya is assigned by the government to develop 24 sections of the trans-Sumatra toll road project, which spans 2,709 km in length. To support the project, the company plans to launch a series of bonds worth Rp 6.5 trillion until 2018. With the expected jump in sales, the company projects its net profit to more than double to Rp 1 trillion in 2017.
In January 2017, ADHI succeeded to bag Rp1.0 trillion total new contracts. The new contracts in the first month of the year decreased by 4.8%YoY compared to January 2016. Projects for New Contracts in January 2017 are as followed: Medan-Kualanamu-Tebing Tinggi Package 1A Toll Road Project (Rp299.7 billion), Transmart Bekasi (Rp192.9 billion), Bintaro Pavillion Apartment (Rp135.4 billion), Intake PDAM Bandarmasih Banjarmasin Project (Rp120.5 billion), and SPAM Kartamantul Jogjakarta Project (Rp78.6 billion).
Pembangunan Perumahan (PTPP)
While, PTPP targets to book new contracts worth Rp 40 trillion this year, which would mark an increase of more than 22 percent from last year’s Rp 32.6 trillion. The publicly listed company has earmarked Rp 21 trillion in capital expenditure for this year focus on construction, followed by low-cost residential buildings, infrastructure and energy.
The new contract will boost the company’s revenue around 50 percent in the end 2017 compared with the target revenue in 2016 as noted at Rp19 trillion. In 2016, the new contract realization noted Rp32.6 trillion or 105 percent compared to the target as noted at Rp31 trillion.
Where the total book order reached as much as Rp71.5 trillion, including carry over in 2015 as much as Rp39 trillion. In 2016, the firm booked Rp 16.46 trillion in revenue up 15.75 percent from 2015 and reaped Rp 1.02 trillion in net profit versus Rp 740.18 billion in the previous year.
Jasa Marga
State owned toll road operator PT Jasa Marga Tbk (IDX: JSMR) is planning to divest minority stake in its two units in 2017, said one official. From the sale of shares the company expect to raise Rp1.4 trillion.
“We plan to divest around 19 percent shares of JORR-W1 and up to 15 percent Transmarga in Central Java,” Finance director of toll Anggiasari Hindratmo told The Insider Stories.
The fund, She said, is part of the financing scheme to fulfill the company capital expenditure (capex) in 2017. Jasa Marga sets aside capex of Rp12 trillion from this year target.
President Director of Jasa Marga Desi Arryani aadded until 2019 the company will operate 1,261 kilometers (km) of toll road from recently owned 593 km across the country. To reach the target, Jasa Marga continue to acquire new toll road concession like Semarang–Demak in Central Java and Probolinggo – Banyuwangi toll road in East Java with a total length of 170 km.
“The other plan is to develop new toll road initiation by the company,” said Desi.
The company also aims to add land bank of 819 km until 2019 and land concession of 2,000 km during this period. With these efforts, She continued, the company’s assets will reach Rp 100 trillion by 2019.
Jasa Marga has raised funds Rp1.79 trillion from issuing new shares of 457.87 million units, or 2.40 percent of the company’s enlarged capital at price of Rp3,900 each. The proceeds of the rights issue will be used to build Semarang–Batang toll road, Pandaan–Malang toll road and Jakarta–Cikampek II. The three projects need investment of Rp 8.0 trillion.
Currently, several projects being developed by Jasa Marga are including multipurpose terminal Kuala Tanjung Port with total investment Rp3.18 trillion; Medan – Kuala Namu – Tebing Tinggi toll road worth Rp4.07 trillion, Depok–Antasari toll road Rp3.47 trillion, Balikpapan–Samarinda toll road Rp9.97 trillion, Pandaan–Malang toll road Rp5 .97 trillion, Manado–Bitung Rp5.12 trillion and MBR Rusunami Rp 3.28 trillion, and Rp2.81 worth of MBR 2×200 MW power plant in Meulaboh worth Rp7.33 trillion with total value of Rp35.06 trillion and Rp18 .13 trillion.
In this year, the company targets to book revenues of Rp10.04 trillion in 2017. (*)