Kawasan Jababeka: KIJA’s toll exit 34km construction expected to complete Nov12 (KIJA, Rp121, Buy, TP: Rp150) - Mandiri

􀂄 Investor daily reported today progress of toll exit 34km construction that designed to give access to four industrial estates within the area, including Jababeka (KIJA), Lippo Karawaci (LPCK), Delta Mas and MM2100. The toll exit construction is expected to be completed in Nov12.
􀂄 In the case of KIJA, the toll exit will be its other construction aside of currently on-going 29km toll exit (completes in beginning 2013) that will give direct access to its Dry Port area. Given the constructions, these provide two catalysts for KIJA’s future growth. Despite of remaining 100ha land bank targeted for residential, the company plans to acquire another 100ha from its area license, which fund sourced from its internal cash, based on our recent conversation with the company.
􀂄 We still like KIJA, given its several catalysts to grow, not to mention the power plant and dry port service. Note that our TP of Rp150 still excludes any contribution from the dry port. We maintain Buy on KIJA. Currently trades at 66% discount to RNAV11 dan PE11F 14x (vs. average peers 52% discount to NAV and PE11 26x)