Mansek Jasa Marga and Citra Marga eyeing operator role in Cilincing-Rorotan (JSMR,Rp2,650,Buy,TP:Rp3,200)(CMNP,Rp930,Neutral,TP:Rp1,100)

Cilincing-Rorotan toll road (3.4Km),or Tanjung Priok toll section E1,has been completed and currently will take an eligibility test conducted by Toll Road Authority (BPJT).If the toll past the test,BPJT will open a tender offer to be the operator on the toll road,so it can commercially operate by end of this year.Tanjung Priok toll road has total length 12Km with total investment needed amounting Rp4.2tn,and the development divided into 4 sections.Jasa Marga and Citra Marga has expressed they interest to participate in the tender.

We have a Buy recommendation on JSMR,trades at PER10F-11F of 13.5x and 11.9x,respectively.

We have a Neutral recommendation on CMNP,trades at PER10F-11F of 3.7x and 3.9x,respectively of 16.5x).