Elevator Pitch
I assign a "Neutral" rating to Indonesia-listed toll road operator PT Jasa Marga (Persero) Tbk (PTJSY, PTJSF, JSMR:IJ). The company's current forward P/E and EV/EBITDA multiples are slightly below five-year historical averages, and this is justified on the basis of possibly elevated capital expenditures going forward and potential regulatory risks relating to future tariff hikes.
On the flip side, Jasa Marga is expected to deliver strong organic growth in FY2020, driven by new toll roads, tariff hikes and improved cost efficiency, with the market consensus expecting the company's revenue and