Sep 21, 2010

Hexindo bags US$40m order from BUMA

Hitachi heavy equipment distributor PT Hexindo Adiperkasa Tbk (HEXA) has secured US$40 million contract of heavy equipment purchase from Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA).
A source familiar with the matter said BUMA has signed contracts of heavy equipment purchase with Hexindo.
"Hexindo will deliver heavy equipments to BUMA up to 2012," the source told Insider Stories today.
Hexindo Corporate Secretary Heri Akhyar confirmed that the company has obtained purchase contract from BUMA. "We have signed the contract. One heavy equipment have been delivered to BUMA. The purchase is in line with BUMA's capital expenditure," he said.
Regarding to the purchase, Heri said, BUMA also obtains financing from Hitachi Construction Machinary Finance Indonesia.
BUMA spent US$115 million capital expenditure (capex) during the first 6 months of 2010, mostly attributed to the purchase of new heavy equipments to support production growth. 
BUMA, wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), expects to spend approximately US$180 million of capex in 2010.
Delta Makmur Director Ariani Vidya Sofjan said heavy equipments purchase is in line with the company's expansion growth until 2012.
"I have to check about the purchase from Hexindo to BUMA. But, we plan to spend capex to buy heavy equipments to underpin business expansion," she said.
Hexindo posted a 118.20% jump in the first quarter's net profit of this year on the back of soaring net revenue.
The company booked US$9.23 million net profit in 1Q 2010 from US$4.23 million in 1Q 2009. Operating income rose 115.92% from US$5.78 million in 1Q 2009 to US$12.48 million. Net revenue surged 132.35% from US$53.17 million in 1Q 2009 to US$123.54 million.
Hexindo stocks slips 1.75% to IDR5,600 per share with market capitalization of IDR4.70 trillion. The stocks are traded at 13,58 fold price to earning ratio.

Disclosure: No position at the stock mentioned above. 

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