Kalbe Farma (KLBF) – Maintain Hold
Price: Rp3,475 – Target Price: Rp3,375
1H11 performance below expectation
- KLBF recorded 5% YoY revenue growth and 18% YoY net profit growth in 1H11.
- In QoQ term, KLBF recorded 10% growth in revenue and 14% net profit growth.
- 1H11 performance was below our estimate, revenue was 39% and net profit was 42% from our projection.
- Historically, first half of the year will be lower than second half.
- Expansion plan includes new generic drug facility in Cikarang, and new RDC throughout Indonesia.
- We maintain our Hold recommendation as the stock valuation is high and currently trading 20.4x PE’11F vs. 16.48x PE’11F JCI. Maintain Hold