The increase in FY19’s net profit can be attributed to JSMR’s ability to maximize operational revenues and toll roads, while the company has also been successful in optimizing its costs. Operational Profit Margin grew by 24.5% YoY. The upcoming New Normal policy can act as a positive catalyst for the Company. Based on those considerations, we put a BUY recommendation with a target price of IDR4,550 representing a Forward P/E of 18.3x.
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