Indocement TP (INTP) - Weak Quarterly Result

Indocement TP (INTP)  – Maintain BUY
Price: Rp18,200 – Target Price: Rp19,400

Weak Quarterly Result

  • INTP’s 9M10 revenue and net profit grew by 9.2% and 27.5% YoY.
  • While on QoQ, revenue and net profit down by 2.2% QoQ and 13.0% QoQ.
  • INTP’s 9M10 came below expectation, only accounted for 61% of FY estimate.
  • Margins dropped by 3-4bps QoQ on lower sales volume and higher production costs.
  • COGS/ton rose by 4.9% QoQ on higher manufacturing overhead.
  • We still reviewing our ‘10F earning forecast on INTP with potential downgrade.
  1. Indocement TP 1 November 2010 (183.6 KiB)