RESEARCH firm Aseambankers Malaysia Bhd said it expects fiscal year ending March 31 2009 (FY09) to be better economically for Lingkaran Trans Holding B hd (Litrak) as traffic at the lebuh Raya Damansara-Pucong (LDP) is close to the level experienced before the January 2007 toll hike.

"Weekday traffic at the LDP averages 4600,000 vehicles per day (vpd) presently, a good improvement from 450,00 vpd early this year," it said in a report dated May 6 2008

"This means that traffic is only about 1 per cent below the pre-January 2007 toll hike level of 464,000 vpd, a steady recovery from a low of 430,000 vpd immediately after Jan 2007's toll rate," it added.

The research firm estimated that the LDP had closed FY08 with a 1.5 per cent contraction in average traffic.

"On expectations that fuel subsidies are unlikely to be cut this years, and with no toll rate hike due until 2011, the LDP should see traffic rebounding in FY09 - we have imputed a 3 per cent growth," Aseambankers said.

In addition, a capital repayment exercise comprising 93 cent cash per share to shareholders is on track ? targeted for completion by July 2008.

Litrak's cash flows remain strong even assuming no growth in traffic at the LDP from hereon. We estimate that the LDP should generate nRM200 million in operating cash flows per years and higher still after the next toll hike in 2011," said Aseambankers, maintaining a 'buy' call with a target price of RM4.40.