WIKA booked an income of IDR16.53 trillion (-39% YoY) in FY20. Margins were recorded lower than FY19, with additional financial costs that increased by 38%, suppressing FY20 profit down by 92% to IDR186 billion. New contract acquisition in FY20 reached 109% from target. New contracts from the infrastructure and construction fell 67% YoY. Meanwhile, to fund signed projects, WIKA needs to pay close attention to the leverage capacity that increased in FY20.
PTPP had a declining performance in FY20. Revenue and profit fell 36% YoY and 86% YoY. Meanwhile, PTPP managed to acquire new contracts worth IDR22.26 trillion or 87% of its target. This year, PTPP will focus on gaining new contracts from the infrastructure segment which projected to grow 107.25% YoY. We estimate this year’s contract achievement to increase by 26.7% YoY.
SMGR booked FY20 income of IDR35.17 trillion or down 12.9% YoY due to decrease in sales volume by 7.9%. However, SMGR successfully managed production costs to be more efficient, which resulted in net profit of IDR2.67 trillion or up by 12.8% YoY. We estimate SMGR’s sales volume to increase in 2021 by 12%-15% YoY.
BSDE books performance recovery in 3Q20. Income was recorded at IDR1.94 trillion (+19.2% YoY, +131% QoQ) supported by increase in development income segment of 37% YoY. Efficiency by BSDE lifted margin and resulted in a profit of IDR559 billion (+156.8% YoY). Marketing sales reached IDR4.7 trillion or 65% of the 2020 target. We see that BSDE’s performance can still grow, supported by strong capital structure.
In 3Q20, CTRA booked an income of IDR1.43 trillion (+11% QoQ, -4.9% YoY) or 19.6% higher than our estimates. However, GPM was slightly down to 43% (vs 45.5% 2Q20) due to high cost of goods sold. Meanwhile, gains from marketing sales in 3Q20 reached IDR1.75 trillion (+100.3% QoQ), continuing the positive recovery trend of marketing sales. In 2021, CTRA will focus on marketing sales income from sales of existing project.
INTP’s performance in 3Q20 improved on a quarterly basis. Both top line and bottom line booked increases of 41.3% QoQ and 829.3% QoQ. Successful efficiency in using fuel and electricity, as well as company’s sales strategy in the home market increased margin. Meanwhile until the end of the year, cement sales growth will face some challenges, such as: rainy season and the long holiday in October and December.
PWON booked an impressive 3Q20 income at IDR1.07 trillion or +10.9% above our estimates and increased 231% QoQ. The gain was supported by all income segments including condominium and office sales, indicating PWON business recovery. Meanwhile, until September, marketing sales have reached IDR725 billion or 68.4% of the target. We are optimistic that PWON can continue performance recovery in 4Q20 supported by better mobility and purchasing power.
SMGR booked an income of IDR9.59 trillion (-18.5% YoY, +28.9% QoQ). GPM, OPM, and NPM reached record numbers in 3Q20, as SMGR succeeded in executing cost efficiency. However, until the end of the year, SMGR’s sales was faced with challenges such as rainy season and long holiday. We predict sales and performance will be better next year, as Indonesian economy recovers and the boost for infrastructure and construction sector starts.
PTPP’s performance in 3Q20 was under below expectations. PTPP recorded an income of IDR3.27 trillion (-38.7% YoY, -2% QoQ) and profit of IDR10 billion (-94.2% YoY). Up to September 2020, PTPP new contracts reached 46% of its 2020 target. However, contract acquisition slowed down in 3Q20. PTPP is expected to realize potential assets divestment to gain fresh flow of funds and boost the FY20 and FY21 performance.
