JP Morgan - Jasa Marga (JSMR) toll-road construction progress

company visit note. Liliana Bambang and Aditya Srinath visited the company and found the findings worthy of a visit note (No Rating). One of the key highlight is the success of completing Bogor Ring Road and Semarang-Solo using the government’s land capping and revolving fund schemes. Another (more accomodative) regulation change could be coming soon. They are talking about applying the "eminent domain" principle – where land ownership for designated toll roads could be converted from private to public. Management believes that this could help accelerate future development plans, if passed by parliament later this year. The company is trading at Bloomberg consensus FY10E PE of 13.5x and EV/EBITDA of 7.3x.