BIM Technology: New Airport, New Milestone
Key Takeaways :
▪️ We took part in a site visit in November 15, 2023, sightseeing WEGE’s latest ongoing project which was the Dhoho Airport. The project was given by PT. Surya Dhoho Investama (a subsidiary of PT Gudang Garam Tbk), rewarding WEGE ~IDR1.8tn from the project’s total value of IDR3.4tn.
▪️ Dhoho Airport will be erected on a vast land area of 300ha, targeting a passenger traffic of up to 1.5 – 2.5mn annually. Dhoho Airport will also harbor a VVIP building with the size of 1,645 sqm, equipped with VVIP lounges and conference rooms.
▪️ While, WEGE’s focus remains; on the lookout for IKN projects, WEGE remains vigilant on pursuing additional contracts related to IKN as the tender offers continue pouring in, as well as establishing cooperation with several contractors to secure other projects.
▪️ We recommend BUY for WEGE, with a TP: of IDR100 which implies PE/PBV of 5.0x/0.4x in FY24F. WEGE’s valuation has become attractive as it is currently trading at a level of –1 STD (average 3-years PE).
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