JAKARTA. It may be difficult for PT Waskita Beton Precast Tbk (WSBP) to improve its new contract growth, because most of its contracts depend on the projects obtained by its parent company, PT Waskita Karya Tbk (WSKT).
Joshua Michael, an analyst from Mirae Asset Sekuritas, said WSBP is targeting new contract growth of around 40% to 70% to Rp 10 trillion - Rp 11.9 trillion in 2020. "Such rapid growth will be difficult to realize, given the limited capacity of WSKT's balance sheets, " said Michael through an official statement on Wednesday (20/11) today.
As of October 2019, WSKT has obtained new contracts with a total value of Rp.4.4 trillion, 63% of its target of Rp 7 trillion. Later in 2020, the state-owned company is also eyeing new Public-Private Partnership (PPP) projects, whose value reaches Rp 5 trillion by 2020.
Meanwhile, WSBP has revenue and net profit target of Rp 7.6 trillion and Rp 882 billion for this year. "It will not be easy for WSBP to achieve its net profit target, because, by September 2019, WSBP has only reached 58% of its net profit target," explained Michael. (KR/AR)