Maintain Hold. Traffic at the LDP has been higher than our forecast. We therefore raise our traffic assumption for FY3/12, but marginally lower our forecasts for future years after considering new competition. This raises highway development amortisation, resulting in our net profit forecasts for FY3/12-14 being lowered by 6-8% p.a.. The impact on our DCF-based target price is however muted, as the higher FY3/12 traffic assumption offsets lower traffic forecasts for the future years, and as the raised amortisation charge in the P&L is a non-cash flow item.

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Source: Maybank Research - 7 May 2012