ADHI ( adhi karya )

Adhi’s 1Q13 net profit is indicated more than doubling yoy to Rp11.8 bn . Although it is only accounting for 2.6% management’s guidance of Rp450 bn , this should be on track to meet that target as the company historically booked highest portion of profit in q4 with 65-85% booking. During 1q the company only booked 1.5-2.6% of full year profit (2010-2012 data). The profit target does not incorporate potential payment from Singapore-based Ortus group of Rp190 bn (monorail construction structure) plus Rp34 bn (sale of stake in PT jakarta monorel, already paid). Adhi is still the cheapest contractor at only 2013 PER of 11.7x (based on management forecast) compared to its peers WIKA-PTPP-WSKT of 19-26x. Moreover, ADHI is expected to book > 100% net profit growth vs peers of below 40%.