CMNP IJ / CMNP.JK | OUTPERFORM - N/A | Share Price Rp2,175.00 - Tgt. Rp3,100.00

REMINDER: CMNP IJ / CMNP.JK | OUTPERFORM - N/A | Share Price Rp2,175.00 - Tgt. Rp3,100.00 Toll Roads | - by Lydia TOISUTA / Linda LAUWIRA 

CMNP is Indonesia's largest private toll operator and has pure exposure to the rapid growth in urban traffic. It is being rejuvenated under new leadership, which should improve execution and result in a sharp boost to growth. We initiate coverage on CMNP with an Outperform call and end-FY13 DCF-based target price (WACC: 8-12%). A near-term plus is its 10-44% valuation discount to infra plays while clearer visibility of South and inner Jakarta toll road construction is a mid-term boost. Catalysts include upside to volume growth on existing toll roads, lower financing costs and tariff hike in late 2013.

Source : Listri Adistri