Morning Highlight
Equity Research Thursday, September 10, 2015 MORNING HIGHLIGHT FROM EQUITY RESEARCH Key Index Chg Ytd Vol Close ADHI: LRT projects groundbreaking: a good start! (%) (%) (US$ m) (ADHI IJ. Rp 2,270. BUY. TP Rp 3,700) Asean - 5 The long-awaited groundbreaking of the Light Rail Transit (LRT) project Indonesia 4,347 0.7 (16.8) 301 finally took place yesterday thanks to the issuance of presidential decree Thailand 1,396 1.2 (6.8) 1,269 no.98 year 2015. This clearly demonstrates the government’s commitment Philippines 6,942 0.7 (4.0) 156 to getting the project off the ground. As stated in this decree, the Malaysia 1,603 1.0 (9.0) 390 government has appointed ADHI as the main contractor to build the Singapore 2,928 1.5 (13.0) 887 project’s infrastructure which shall encompass six routes within Jakarta, Regional Bogor, Depok and Bekasi. On top of this, the government has stepped up to China 3,243 2.3 0.3 40,820 be the project owner. This is a positive for ADHI, we believe, since the Hong Kong 22,131 4.1 (6.2) 14,978 company will be able to undertake the construction works without its Japan 18,196 (3.1) 4.3 1,142 balance sheet being burdened. All in all, we believe this is a good start for Korea 1,925 (0.5) 0.5 4,425 the greater plan of integrating mass public transportation in the Greater Taiwan 8,287 3.6 (11.0) 3,613 Jakarta area.
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