PLUS Expresways : Maintain Buy - MIB

Buy PLUS RM3.33:  Target price: RM4.20 (unchanged)
- Strong traffic rebound
Maintain Buy. 1Q10 traffic at PLUS’ major expressways has shot past our expectations. We raise traffic forecasts, impute FRS 139 charges, and update our earnings model after the 2009 annual report release –all in, a small 5% downgrade in our 2010 net profit forecast. Our DCF-derived TP is however, unchanged. We continue to like PLUS for its dividend yield and long-term regional expansion offerings. 

by Maybank Investment Bank