Profound Achievements and Asset Revamp: A Winning Combo
Key Takeaways:
▪️Our projections on the operational revenue to climb by +15.1%/+12.8% YoY, followed by core net profit growth of +22.1%/+25.2% YoY with an NPM of 18.0%/20.0% in FY24E/FY25F, propelled by the implementation of toll tariffs hike and increasing traffic volume following the mass leaves during national holiday seasons, especially in the New Toll Roads (Metropolitan, Transjava, and Nusantara).
▪️The JTT divestment (35%) was closed with a value of IDR15.8trillion (IDR2,068.5/share), resulting a valuation of 2.0x PBV and 8.0x PER. We view this not only as a great deal but also as an indication of the purchasers’ optimism in JTT’s growth potential, reflected by their commitment to pay a premium price. Our perspective on this asset recycle is relatively positive, as the received fund will be beneficial for JSMR’s future financing, deleveraging, and potential finance costs efficiency.
▪️We maintain a BUY recommendation for JSMR with a TP of IDR6,250/share (+14.7% upside), implying 11.2x/10.8x of FY24E/FY25F EV/EBITDA.
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