Waskita Karya Pursues New Contract Contract Target For Construction Services, WKST Shares Recommended Sell On Strength

JAKARTA - In pursuit of a new contract target for construction services, BUMN Karya PT Waskita Karya (Persero) Tbk (WSKT) becomes the owner of a minority stake in the Toll Road Business Entity (BUJT) PT Jasamarga Gedebage Cilacap (PT JGC). Through PT JGC, Waskita is targeting construction services for the Gedebage-Tasikmalaya-Cilacap (Getaci) toll road construction.

The majority of JGC shares are owned by PT Jasa Marga (Persero) Tbk, PT Dayamulia Turangga, PT Gama Group, PT PP (Persero) Tbk, PT Wijaya Karya (Persero) Tbk, PT Jasa Sarana and the Company. In this consortium, Waskita has a minority stake of 12,191 shares or the equivalent of 20 percent ownership.

"We played an active role in the construction process," Waskita President Director Destiawan Soewardjono said in a written statement as reported by Antara, Sunday, February 6.

Destiawan added, armed with support from the Government and the successful implementation of Waskita's 8 streams of financial restructuring last year. The Company will continue to be committed to improving sustainable financial performance by focusing on business operations in 2022 and prioritizing the principles of Good Corporate Governance (GCG) and Risk Management in every process of selecting new contracts.

The establishment of the JGC is expected to provide an opportunity for Waskita to get a share of construction in the construction of the Getaci toll road. "The establishment of the consortium is also in line with Waskita's business transformation strategy, which currently focuses more on projects with minority ownership and low risk," added Destiawan.

Throughout this year, WSKT shares are in a strong position. As of trading Friday, February 4, WSKT's shares have risen 4.72 percent year to date from the final position in 2021 of IDR 635 to IDR 665.

Seeing this movement, Panin Sekuritas analyst William Hartanto assessed that the WSKT stock formed a shooting star pattern which is a bearish pattern. "The pattern formed at the highest price of Rp. 695 indicates a resistance test of Rp. 700," said William.

William also recommended selling on the strength of the WKST stock. The range of WKST support levels is IDR 620 - IDR 570, with resistance levels ranging from IDR 700, IDR 740 and IDR 815.