Kalbe Farma (KLBF) - Weak 1Q11 Top Line Growth

Kalbe Farma (KLBF) – Maintain Hold
Price: Rp3,575 – Target Price: Rp3,375

Weak 1Q11 top line growth

  • KLBF’s Top line grew by 7.5% YoY while bottom line also increased by 23.3%.
  • 1Q11 result below expectations.
  • Revenue accounted for 18.6% from our estimate while net income accounted for 19.4% from our estimate.
  • Distribution & Packaging division’s underperformance dragged the overall revenue growth due to absence of packaging unit.
  • We maintain our recommendation and our target price at Rp3,375 reflecting 19.85x PE’11F. Maintain Hold