Wijaya Karya

Wika by name, Stronger by nature

We initiate coverage on WIKA with a BUY recommendation, setting our TP at 
Rp1,860, translating into PE FY13-14 of 19.9-16.5x, providing 11% upside 
potential. WIKA, the largest state-owned construction company in the country, 
is well-positioned to seize the opportunities coming from rising infrastructure 
spending. The company has a well-diversified business model leading to superior 
margins, stable cash flow, and lower gearing. Moreover, the company has seized 
upon opportunities in the power plants business through the IPP business model


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