Wika Beton Targets $452m New Contracts for 2017
Jakarta. Wijaya Karya Beton, the concrete-making arm of state-owned builder Wijaya Karya, better known as Wika, eyes Rp 6 trillion ($452 million) in new contracts next year, on the back of new infrastructure projects in Sumatra, Java and Kalimantan.
The company now expects to bag Rp 6 trillion in new contracts this year, 40 percent higher than its initial target of Rp 4.3 trillion, thanks to a surge of new orders for building material from October to December.
"We usually target growth of new contracts between 20 percent and 30 percent every year. But, for next year we hope it would be at least the same as this year," said Puji Haryadi, corporate secretary at Wika Beton, on Tuesday (13/12).
Some of the construction projects that Wika Beton managed to secure include concrete cast for Medan-Kualanamu railway project in North Sumatra, piles for a power plant expansion in Cilacap in Central Java and ready mix concrete supply for Balikpapan-Samarinda toll road project in East Kalimantan.
Next year, the company eyes to supply concrete cast components for Jakarta's light rail transit project that is being constructing by its parent Wika.
Wika is also involved in the Jakarta Bandung high speed train construction, which would require supplies of precast concrete.
Kiswoyo Adi Joe, an equity analyst at Recapital Securities said that Wika Beton's shares offers opportunity to investors seeking to tap into Indonesia's growing infrastructure.
Wika Beton opened at Rp 865 per share on Wednesday at Indonesia Stock Exchange, 0.6 percent higher than its closing price a day earlier. At that price, the company is traded at 46 times of its earnings.
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