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