Shares of state-owned construction companies move positively, here’s stock recommendations from analysts

Reporter: Nur Qolbi | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. The majority of State-Owned Enterprises (BUMN) construction stocks recorded positive performance throughout November 2021. Only PT Waskita Karya (Persero) Tbk (WSKT) which shows a significant decline in prices.

In a way month to date (mtd) as of Friday (11/19), WSKT fell 11.41% to the level of Rp 815 per share. Meanwhile, PT Adhi Karya (Persero) Tbk (ADHI) increased 6.19% to Rp 1,115 per share, PT Wijaya Karya (Persero) Tbk (LANGUAGE) rose 4.02% to Rp 1,295, and PT PP (Persero) Tbk (PTPP) increased by 3.73% to Rp 1,250 per share.

Samuel Sekuritas analyst Andreas Kristo Saragih assessed that WSKT’s stock price fell because investors were still wait and see against the plan to increase capital with pre-emptive rights (HMETD) alias rights issue company. Market participants are still waiting for the announcement of the number of shares issued and their exercise price.

Meanwhile, Artha Sekuritas analyst Dennies Christopher Jordan believes that the decline in share prices listed by WSKT is due to the company’s financial condition which is the most unhealthy compared to others.

Also Read: Good performance, Astra International (ASII) shares get a buy recommendation

“Cash flow and debt is currently still in the stage of restructuring. Automatically WSKT becomes unattractive compared to other BUMN Karya shares,” said Dennies when contacted by Kontan.co.id, Friday (11/19).

Even so, for the future, the two analysts assess that construction stocks still have attractive prospects. According to Dennis, the stock price can still rise along with the sentiment window dressing at the end of the year following the January Effect.

The company’s performance is also expected to begin to improve. The reason is that infrastructure development is much more aggressive throughout 2021, considering that many projects in 2020 have been delayed due to the Covid-19 pandemic.

Andreas also sees that the prospects for stocks towards the end of the year are quite good and will remain good in 2022. “BUMN and ministries are starting to issue their capital expenditures again so this will be a driving force for BUMN Karya’s performance in 2022,” said Andreas.

Also Read: Check out the recommendations for Bukit Asam (PTBA) shares which have interesting prospects

Specifically for WSKT, the performance in 2022 is also expected to be better than in 2020 and 2021 because the debt restructuring process has been completed. What’s more, Waskita will also get additional capital from the implementation rights issue.

For now, Andreas posted a recommendation buy for the four construction SOE shares with a target price of Rp 1,420 for ADHI, Rp 1,400 for PTPP, Rp 1,440 for WIKA, and Rp 1,220 for WSKT.

Meanwhile, Dennies favored WIKA with the closest target price of Rp 1,350 per share.