GROSS MARGIN TO STAY AT HIGH TEENS
With 35 GW project gaining pace, PLN distribusi centralized procurement system which lead to better unit prices, rupiah stability, and also low – stable alumunium copper prices, we expect KBLI gross margin to stay at high teens around 16-18% or even 20% if they can reduce unabsorbed cost. We excited and can’t wait to see next year gross margin when copper high voltage NX2K and medium voltage AC3, ACSR sales portion getting bigger in KBLI income statement. KBLI also will expand their production capacity.
KBLI gross margin currently closer to 17% in 1H 2016, the rise of medium – high voltage cable sales proportion will keep the margin at high teens……..
Valuations metrics like PE, PBV, and EV / EBITDA remain attractive even with improving earning performance…….