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JSMR - September 6th 2011


Industry sector: Infrastructure, Utilities & Transportation
Industry sub sector: Toll Road, Airport, Harbor and Allied Products


Company Profile

JSMR operates toll roads, from the planning stage throughout the maintenance and management. Construction and improvement of new toll roads and their facilities are also within the company’s scope of business. By the end of 2009, it operated 13 toll roads: Jakarta-Bogor-Ciawi, Prof. Dr. Ir. Soedijatmo, Surabaya-Gempo, Jakarta-Cikampek, Belawan-Medan and Jakarta Outer Ring Road (JORR). The Company’s subsidiaries are PT Jalantol Lingkarluar Jakarta, PT Marga Sarana Jabar, PT Trans Marga Jateng, PT Marga Trans Nusantara, PT Marga Nujyasumo Agung and PT Marga Lingkar Jakarta.

At IDR 4,100 the stock is surely a lot cheaper than GGRM, but its performance has been very promising so far. Looking back, by the end of August 2011 JSMR’s poor performance came in 1Q11 when it slightly fell 0.73%. Subsequent 2Q11 saw a decent gain of 6.62% from this toll road operator. What’s quite impressive is that the stock managed to weather the August storm as it held on to gains of 0.63%. Even on Monday, the strong negative mood around the global markets could not stop the stock to settle with a gain of 2.5%.


From its daily chart, JSMR is clearly POSITIVE. Its MACD is picking up while its EMAs are on the rise.

 

On the weekly basis, the directional bias is also upwards as supported by the rising MACD as well as the EMAs.

 
Longer-term, the prospect for launching another rally is good and thus we may see JSMR to rise towards IDR 4350 and all the way towards IDR 4,450 and subsequently IDR 4,775.

As a reminder, the support at around IDR 3,800 should hold if the stock to maintain its POSITIVE outlook. Below this support may shift the outlook back to NEUTRAL although this may not be necessarily mean that it will fall.

The stock is rather defensive in nature, so over time accumulating JSMR is probably a good idea if one has longer-term orientation.

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