Indofood Sukses Makmur (INDF) – Maintain BUY
Price: Rp5,000 – Target Price: Rp6,000
Excellent FY10 net profit
- For FY10, INDF recorded 3% YoY revenue growth to Rp38.4 trillion and 42% YoY net profit growth to Rp2.95 trillion.
- The overall performance QoQ basis in 4Q10 was lower compared to the previous period with revenue and net profit declined by 1% and 16% respectively.
- The revenue result came in-line with our estimate while net earnings was slightly above our projection.
- Operating and net margin grew to 18% and 8% respectively mainly due to lower raw material cost and stronger Rupiah.
- Lower interest expense as a result from debt repayment using ICBP IPO proceeds
- Currently, INDF is trading at 14.4x PE’11F, we maintain our recommendation and valuation on the stock. Maintain BUY