Tuesday, October 30, 2012

Jasa Marga (JSMR.IJ, BUY) - At Cruising Speed

v      In the absence of oneoff income, JSMR 3Q12 net profit fell 26.5% QoQ to IDR378b, still translating to 9M12 earnings growth of 39% YoY, on track to reach our fullyear forecast.
v      With higher contribution from the construction division, 3Q12 operating margin contracted to 29% from 36% in 2Q12. Nevertheless, core business of toll road operation continued to register stable margin of 46%, bringing 9M12 consolidated operating profit to IDR2t, up 36% YoY.
v      With construction progressing at a swift pace, we expect timely completion to underpin earnings going forward. This coupled with tariff adjustment on major routes next year have caused us to retain our BUY rating with TP of IDR6,800.

source: KIMENG dated 30 October 2012