Wika Gedung targets Rp15 trillion in contracts throughout 2023
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Wika Gedung bidik kontrak Rp15 triliun sepanjang 2023
12 May 2023
Jakarta - PT Wijaya Karya Bangunan Gedung Tbk (WEGE) or Wika Gedung forecasts to secure an order book of Rp15.63 trillion throughout 2023, which increases by 20.07% from last year’s realisation that reached Rp13.02 trillion.
Wika Gedung President Director Hadian Pramudita explained that the order book target consisted of a new contract target of Rp6.7 trillion and carryover contracts of Rp8.9 trillion. Moreover, this year’s new contract composition will reach 68.21% from the government, 13.72% from state-owned enterprises (SOEs)/region-owned enterprises (BUMDs), and 18.07% from the private sector.
“The composition shows that Wika Gedung is focused on projects with strong, clear, and independent funding,” Hadian explained on Thursday (11/5/2023).
For the sales target (including joint operation/JO), Hadian mentioned, this year, the company was targeting it to grow 54.56% to Rp5.1 trillion from last year’s realisation that reached Rp3.3 trillion. Net profit is set to increase by 9.16% to Rp251.36 billion compared to last year’s net profit realisation that reached Rp230.26 billion.
Hence, the issuer with the WEGE ticker code is allocating a capital expenditure (capex) of Rp266.1 billion for capital employed development and investment.
Hadian hopes that, with a clear and a fundamentally healthy market, WEGE can achieve the targets this year. “Besides that, the company’s business survival in 2023 is also expected to continue as the company has carryover projects worth Rp7.55 trillion that can be worked on this year,” he added.
The company believes that they will achieve the targets this year as they are also sustained by the national economic condition that is recovering, despite the slowdown and the political year. Several positive catalysts will support WEGE’s performance this year.
The catalysts include the increase in the people’s mobility after the revocation of public activity restrictions (PPKM), the recovering business prospect, the increase in the inflow of foreign investment, and the continuity of the completion of national strategic projects (PSNs).
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