Risk factor
Very high price volatility
Profitability factor
Undervalued vs peers
About
PT PP Presisi Tbk operates as a leading integrated construction firm in Indonesia, primarily leveraging a vast fleet of heavy equipment. The company delivers a comprehensive suite of services encompassing civil engineering projects, the supply of ready-mix concrete, foundation installation, formwork solutions, structural erection, and mining operations, alongside offering heavy machinery rental. Its civil works expertise spans a wide range, including the construction of ports, airports, railways, coastal defenses, irrigation systems, reservoirs, tunnels, various building structures, roads, bridges, swamp reclamation, pipe laying, drilling, and site preparation. Beyond these core offerings, it also provides mechanical and electrical services, logistics and transportation, and trading activities. The company maintains a substantial inventory of 2,985 heavy equipment units. This extensive fleet includes 2,817 mobile machines such as excavators, bulldozers, dump trucks, various rollers, loaders, and specialized paving and lifting equipment. Additionally, it possesses 168 large-scale stationary units, which feature asphalt and batching plants, a diverse array of cranes, drilling rigs, and stone crushing machinery, among others. Originally incorporated in 2004 as PT PP Peralatan Konstruksi, the company rebranded to PT PP Presisi Tbk in March 2017. Headquartered in East Jakarta, Indonesia, it operates as a subsidiary of PT Pembangunan Perumahan (Persero) Tbk.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA, underpriced on P/FC.