ID – [IMJS IJ]: Trucking For Growth; Initiate Coverage With BUY
Andrey Wijaya, Alvin Baramuli (RHB Sekuritas Indonesia)
Link to report: https://research.rhbtradesmart.com/attachments/82/rhb-report-ind_indomobil-multi-jasa_initiating-coverage_20180926_rhb_final-18150089603537355baada67ebe27.pdf
♦ Initiate coverage with BUY and DCF-derived TP of IDR970, 58% upside. Our TP implies 2019F-2020F P/Es of 14.8-10x.
♦ We believe IMJS is one of the key beneficiaries of the shift to digital logistics, thanks to its well-managed IT logistics system.
♦ The company is aggressively increasing its truck fleet, driven by high demand from FMCG companies, as well as its own group of affiliated companies.
♦ Meanwhile, we see earnings from financial services stabilising with declining credit cost.
♦ Key risk to our call is the availability of truck drivers to support fleet growth.
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