May 12, 2010

PLUS Expressway : Maintain Buy TP RM4

PLUS Expressway (RM3.39; Buy; Price Target: RM4.00)
Stock Code 5052

Starting 2010 on the right foot
•  Strong 1Q10 traffic provides potential upside to PLUS’KPI
•  Asas Serba’s 7% coupon on bond could be challenging on its FCF, in our view
•  Maintain Buy, DCF-derived TP of RM4.00

by HWDBS Vickers 

The principal activities of the Company are investment holding and provision of expressway operation services. Its sole and wholly-owned subsidiary company, Projek Lebuhraya Utara-Selatan Berhad (PLUS) is involved in the operation and maintenance of a tolled expressway network comprising the North-South Interurban Toll Expressway, the New Klang Valley Expressway, and a section of Federal Highway Route 2 between Subang and Klang in Peninsular Malaysia.