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Infrastructure stocks – toll road operators

QuestionsCategory: Business QuadrantInfrastructure stocks – toll road operators
Yao Keng asked 4 years ago

Hi Victor/ Rusmin,
An idea came to mind to look at possibly toll road operators. Singapore used to have one CMPacific which was delisted not long ago. The dividends payout was good.
The link below (dated 2011) listed some of these stocks and Bangkok Expressway and Metro PCL BEM: SET is one of them. In Indonesia, a Google search revealed one Jasa Marga (Persero) IDX: JSMR
https://seekingalpha.com/article/267316-for-whom-the-road-tolls-reviewing-listed-toll-roads-bridges-and-tunnels?page=3
Toll road operators. I believe, have recurring revenue, but possible downside is high debt.
Would like your opinion on whether this category of stocks is worth looking at. Thanks.

1 Answers
Victor Chng Staff answered 4 years ago

Hi Yao Keng,
 
You are right that toll road business are good and the downside is the debt. Hence monitoring the debt level is important. We used to own a toll business and sold it a few months back at a gain.