Kalbe Farma (KLBF) - Performance Meet Expectations

Kalbe Farma (KLBF) – HOLD (Downgrade)
Price: Rp3,650 – Target Price: Rp3,375

Performance meet expectations

  • In-line FY10 audited results.
  • Nutritionals division outperforms compared to the other divisions with 18.4% YoY growth while Consumer health division underperform.
  • New pharmaceuticals facilities for generic drugs tablet and oncology drugs.
  • Our DCF valuation suggest a new fair value of Rp3,375 implying 19.85x PE’11F.
  • We downgrade our recommendation to Hold with 8% downside as current market price has exceeded our TP and trading at 21.4x PE’11F. HOLD