Highway of Profitability
Key Takeaways :
▪️JSMR reported a revenue of IDR3.4 trillion in 1Q23 (+6.0% YoY). Meanwhile, EBITDA was recorded a marginal increase at IDR2.2 trillion (+0.1% YoY) with EBITDA margin at 64.3%. The company's net profit was at IDR497.6 billion (+26.7% YoY) implying a net margin of 14.7%.
▪️Traffic volume increased by 8.3% YoY in 1Q23 to 312.5 million units along with adjustments in tariffs on 4 toll segments as of June-2023 are expected to improve JSMR's profitability. Furthermore, JSMR is planning to operate three new toll roads totaling 56.9 km by FY23E, resulting in total operated toll roads of 1,317 km (vs 1,260 km in FY22).
▪️JSMR is expected to see a 12.8% YoY increase in revenue to IDR15.5 trillion in FY23E. EBITDA is expected to reach IDR8.9 trillion (+2.6% YoY) with margin of 57.3%. Additionally, we expect lower net profit of IDR2.2 trillion, albeit with a contracted margin at 13.9% due to the MBZ divestment in FY22.
▪️We recommend BUY for JSMR IJ with the TP: IDR4,500 implying FY23E EV/EBITDA of 8.0x. Downside risks: 1) another mobility restriction; 2) high interest rate; 3) natural disaster.
MNCS Research
Disclaimer On
