Jasa Marga plans to increase ownership to 55% in Aloha-Perak toll road (JSMR, Rp1980, Buy, TP: Rp2400)

JSMR will increase its ownership in PT Margaraya Jalan Tol (MJT) to become 55% from 2.5% of current ownership, the process still in due diligence. MJT is a concession agreement holder of Waru (Aloha) – Wonokoromo-Tanjung Perak toll road, also known as Aloha-Perak toll road (18.6Km), in Surabaya, East Java; which include on stalled toll road projects. Investment needed for this toll may reach Rp6.5tn, which Rp1.3tn will be used for land clearance. The high cost also caused due to construction for the road is elevated. Besides JSMR, PT Duta Graha Indah Tbk (DGIK) also expressed interest to increase its ownership on MJT, as the company has 1.0% of shares. (Investor Daily)

Mandiri Sekuritas JSMR: 1Q10 revenue may reach Rp1tn (JSMR, Rp2100, Buy, TP: Rp2400)

􀂄 JSMR indicated that 1Q10 revenues could reach Rp1tn (+20.0%yoy) This may be due to: (1) increasing traffic volume, in 1Q10 traffic reached 226.5mn (+3.1%yoy); (2) higher tariffs from Sep-09; and (3) revenue contribution from BORR which operated last Nov09; currently average daily traffic on BORR is about 17,500 vehicles/day.

􀂄 We estimate revenue FY10 could reaches Rp4.3tn, in line with company’s expectations, and traffic may reach 947mn vehicles (+3.4%yoy). Currently, the company operates 528km length of toll road, covering 76% of the country’s total toll road length, which shall be expanded to 750Km by 2014.

􀂄 We have Buy on JSMR, trading at PER10F of 12.1x and P/BV10F of 1.8x.