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).

Mansek INKP 1H10 net income is above our estimate (INKP,Rp1,760,Neutral,TP:Rp1,950)

INKP posted 1H10 net profit of US$91mn (+4.0%qoq),which is above our estimates.
All P&L accounts yoy and qoq growth are due to increase in selling price by 34%yoy and 13%qoq.

Pulp price in July 2010 seems to reach its peak with several up and down in that month.We heard that selling price for August delivery drop considerably.Therefore,even though the company ’s performance is likely to surpass our FY10F estimates,we do not think the outperformance is significant.

We have a Neutral recommendation on INKP which currently is trading at PER10-11F of 8.9-7.4x.

Mandiri Sekuritas Summarecon Agung: SMRA net profit surged by 47.9%, in line with ours (SMRA, Rp880, Buy, TP:Rp1,130)

SMRA reported earnings surge by 47.9% yoy to Rp101.6bn, which is in line with our expectation, but slightly below consensus estimates. This was a result of higher revenue which increased by 26.8% to Rp677.6bn, following company’s sales pick up in 2009 by 31.5%, which up to realization this year. SMRA trades at 46% discount to our NAV10, and PE10 26.3x. We have Buy recommendation on the stock.

Mandiri Sekuritas Aces Hardware: 1Q10 Within our and consensus estimate (ACES, Rp1,710, Neutral, TP:Rp1,770)

Same with Mitra, ACES also less impacted by seasonality. In 2009, revenue from 1Q09/FY09 was 22.2%, while 1Q09 operating profit was 25.1% of FY09 operating profit. Hence we considered 1Q10 operational performances are within our expectation with a slight negative bias. At Rp1,710/share, ACES is trading at 17.0x and 15.4x PER10F, and PER11F, respectively. We think ACES, has to boost its productivity in quarters to follow, to catch up slight under-peformance in operating profit.