JASA MARGA - RUNNING A LONG-DISTANCE RACE (TARGET RP 7,600)

    
- JSMR reaffirmed its aggressive target of completing 394km under construction in 2016-2019 and officially added four new roads (252km) to its project list.

- Taking into consideration the investment cost for the new and proposed projects, debt capacity is short; but the planned Rp1.25tr equity injection is still on the cards.

- Higher interest expensing is a key downside risk to our EPS forecast in 2017; however, EBITDA growth should remain positive.

- Maintain Add on attractive long-term growth (21% earnings 7-year CAGR).