Below is a list with tagged columns and company profiles.
Today's Headlines Wijaya Karya
Puspita Anggraeni, Corporate Secretary at state-controlled construction company Wijaya Karya, said the company's rupiah-denominated global bonds (called "komodo bonds", in reference to the komodo dragon found on several islands in the eastern part of Indonesia) proved popular among investors.
While competition has become increasingly fierce on the domestic bond market, two of Indonesia's state-controlled companies - but listed on the Indonesia Stock Exchange - are studying plans to sell rupiah-denominated corporate bonds on the global market (so-called nasi goreng bonds, a reference to the famous Indonesian fried rice dish). The two companies that are studying these plans are toll road developer and operator Jasa Marga and construction company Wijaya Karya.
Wijaya Karya Gedung (Wika Gedung), a subsidiary of construction firm, Wijaya Karya, is planning to conduct an initial public offering (IPO) on the Indonesia Stock Exchange. The company, which focuses on the construction of private buildings, offices, apartment, shopping centers, and other commercial as well as non-commercial buildings, plans to offer 30 percent of its total share capital to investors. Wika Gedung targets to raise a total of IDR 1.5 trillion (approx. USD $114.5 million) from this move.
One of the Indonesian companies - listed on the Indonesia Stock Exchange - that is in a great position to improve its corporate earnings on the back of the construction of the country's first high-speed railway is Wijaya Karya Beton (Wika Beton). The railway between Jakarta and Bandung has a length of 142 kilometers and requires a large amount of precast concrete. Moreover, Wika Beton is a subsidiary of Wijaya Karya. This construction company is among the companies that develop the Jakarta-Bandung railway.
Today, Indonesian President Joko Widodo will lay the first stone for the groundbreaking ceremony of the 2,700 km Trans-Sumatra toll road project, linking Lampung to Aceh on the resource-rich island of Sumatra (Indonesia’s second-largest island in terms of geographic size). The toll road, which is one of the key priority infrastructure projects for the Indonesian government, is estimated to require a total of IDR 300 trillion (USD $23.1 billion) of investment. Ten years after parts of the toll road were first tendered, construction can finally commence.
As companies' corporate earnings reports covering the first quarter of 2014 have been released since the last couple of weeks, it is interesting to take a quick look at the top ten most profitable Indonesian state-owned companies (SOE) that are listed on the Indonesia Stock Exchange (IDX). The ten companies are ranked on highest net profit in Q1-2014 in the table below. It is interesting to note that four of these companies are banks, while there are two pairs of cement producers and construction companies.
On Tuesday (08/04), Wijaya Karya Beton (Wika Beton) was officially listed on the Indonesia Stock Exchange (IDX) with listed company code WTON. Wika Beton, a subsidiary of majority state-owned construction company Wijaya Karya, specializes in the precast concrete industry of Indonesia. The company issued two billion shares, or 23.47 percent of its enlarged capital, and expects to raise up to IDR 1.28 trillion (USD $113 million), which will be used for business expansion and for additional working capital.
Wijaya Karya Beton, better known as Wika Beton, set its share price at IDR 590 for the initial public offering (IPO) on the Indonesia Stock Exchange. Previously, the company indicated an offering price target in the range of IDR 470 to IDR 630 per share. As Wika Beton's shares are expected to lure investors, the price was set relatively high within that price range. During Wika Beton's roadshow to Malaysia, Singapore and Hong Kong, global investors expressed their interest in the company's prospects.
Four publicly listed - yet state controlled - construction companies recorded a combined 42 percent growth (year on year) in net profit in 2013. The combined net profit of these four companies - Wijaya Karya (Wika), Adhi Karya, Pembangunan Perumahan (PP) and Waskita Karya - totaled IDR 1.74 trillion (USD $146.2 million) last year. These numbers evidence the robust growth that Indonesia's property and infrastructure sectors experienced in 2013 and is expected to continue in 2014.
Wika Beton, a subsidiary of majority state-owned construction company Wijaya Karya, will sell over 20 percent of its enlarged capital in an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in the first quarter of 2014. The company, which has appointed Bahana Securities, Mandiri Sekuritas, Danareksa Sekuritas and Sucorinvest Central Gani to act as underwriters for the IPO, expects a 20 percent increase (yoy) in revenue to IDR 2.4 trillion in 2013, and targets a similar growth rate in 2014.
Latest Columns Wijaya Karya
Construction company Wijaya Karya (Wika) is conducting a roadshow for its rupiah-denominated global bonds (to be listed on the London Stock Exchange). Wika is following the example of state-controlled toll road operator Jasa Marga that listed its rupiah-denominated global bonds (also known as "komodo bonds") in London on 13 December 2017.
Revenue and profit of Wijaya Karya (Wika), one of Indonesia's biggest construction companies, is partly dependent on developments surrounding the Jakarta-Bandung high-speed railway project. Earlier this month, Indonesian President Joko Widodo ordered an evaluation of this railway project, which saw groundbreaking in 2016 but has shown limited progress ever since.
Two state-controlled companies are planning to issue global rupiah-denominated bonds (often called nasi goreng bonds). Construction company Wijaya Karya, which is listed on the Indonesia Stock Exchange, plans to issue up to USD $500 million of nasi goreng bonds in the second half of 2017. Besides the nasi goreng bonds, the company also plans to sell up to IDR 5 trillion of rupiah-denominated bonds on the domestic market.
Wijaya Karya Beton is one of Indonesia's leading precast concrete producers. The company, which is a subsidiary of state-controlled construction company Wijaya Karya (Wika), manufactures a product line that includes pre-stressed concrete piles, bridge girder products, pipes, railway, and sleepers. After a bleak 2015 Wika Beton is expected to post rising net profit and revenue in the years ahead supported by a capital injection into its parent company.
Last week it was officially announced that China Railway International Co. Ltd, subsidiary of China Railway Group Ltd, together with a consortium consisting of Indonesian state-owned enterprises (which include Pilar Sinergi BUMN Indonesia, Wijaya Karya, Kereta Api, and Jasa Marga) will build Indonesia's first ever high-speed railway, valued at over USD $5 billion, between the capital city of Jakarta and Bandung (in West Java), a route that stretches for approximately 150 km.
