Wednesday, August 15, 2012

Jasa Marga (JSMR.IJ, BUY) - On Course

-      Construction of JORR W2 North (7.7km) reveals an enlightening progress and set for construction completion in FY13. Boost in traffic volume would come from as JORR W2 North would connect with existing route of JORR with IDR1t annual income, 22% of JSMR revenue.
-          Acquisition of 21.4% stake in Cinere – Jagorawi (Also connects with existing route) may not be reflected in JSMR’s revenue, but potential negotiation to further raise its ownership as a majority is on the cards .
-          Growth support in 2H12 should come from realisation of 10% tariff adjustment on Sedaytmo toll road and additional tariff adjustment on Jakarta – Cikampek toll road. Retain BUY with higher TP of IDR6,800.

source: KIMENG dated  14 August 2012