CIMB What's on the table "Jasa Marga"

Quick Takes – Jasa Marga – Unhurt by slowing economy

JSMR's traffic volume in 4Q08 was flat qoq, despite a qoq contraction in GDP. Traffic volume in Indonesia is likely to be recession-proof as toll roads are mainly used for in-town travel and are regarded as necessities. JSMR’s credit-worthiness should also not be affected by the CMNP default as it has a solid credit history. In spite of its resilience, we remain Neutral as we see a lack of near-term catalysts. Maintain DCF-based target price of Rp1,050.