Wijaya Karya's Stock Price Plummets 61% from its Peak

Poor financial performance in 2020 continues to deter investors from collecting shares of PT Wijaya Karya (Persero) Tbk. As a result, the share price of the state-owned company in the property sector continues to decline.

On Monday, August 23, 2021, the share price of the state-owned company, with the trading code WIKA, closed up Rp 65 (7.65%) to Rp 915 per share from the previous weekend's closing price of Rp 850 per share.

However, compared to its highest position this year at Rp 2,360 per share (January 15, 2021), WIKA's share price has fallen by 61.23%. Compared to the end of last year, the construction company's shares also fell by 53.93% (year to date/ytd).

Based on the issuer's financial statements, the profit attributable to the parent entity's owners of WIKA plummeted 91.87% to only Rp 187.77 billion in 2020 from Rp 2.28 trillion in 2019. With the decline in company profits, the net profit per share also shrank to only Rp 20.71 per share compared to Rp 254.74 per share the previous year.

The decrease in net revenue by 39.23% to only Rp 16.54 trillion in 2020 from the previous year, coupled with increasing expenses, caused WIKA's profits to be sharply eroded during the Covid-19 pandemic.

For information, the government's ownership in WIKA reaches 5.83 billion (65.04%) Series B shares and 1 Dwi Warna Series A share out of a total of 8.97 billion shares listed on the Indonesia Stock Exchange.