• WTON’s production capacity, from 14 Concrete Products Plants spread across Indonesia, reached 3 million tons in 2017, a 20% increase from 2016’s 2.5 million tons.

• WTON plans to issue medium-term notes (MTN) worth IDR 400 bn which matures in 2-3 years to finance capital expenditure (capex) and working capital needs.

• Up to 4M18, WTON has obtained new contracts worth IDR 2.05 Tn (+15.5% YoY). This represents 27.1% of WTON’s 2018 new contracts target of IDR 7.56 Tn.

• We reinitiate our coverage on WTON with a BUY rating and 12-month forward price target of IDR 640 per share using Discounted Cash Flow valuation method implying upside potential of 49.5%. The valuation assumes terminal growth of 6% and WACC of 9.5% to arrive at the target price which implies 12.8x FY18F P/E ratio and 7.8x FY18F EV/EBITDA.

INDONESIA
PT Phillip Securities Indonesia
ANZ Tower Level 23B, JlJendSudirman
Kav. 33A Jakarta 10220 – Indonesia
Tel +62-21 5790 0800 Fax +62-21 5790 0809
Website: www.phillip.co.id