AKR Corporindo (AKRA) - Excellent 1Q11 Result

AKR Corporindo (AKRA)– Maintain BUY
Price: Rp1,680 – Target Price: Rp1,900

Excellent 1Q11 Result

  • AKRA’s 1Q11 earnings and revenue surged by 79% and 2,480% YoY respectively.
  • 1Q11 Revenue and net income came above our estimate.
  • Every division contributed positive top line growth due to volume growth.
  • Petroleum distribution remains the main revenue generator.
  • Manufacturing division also performed well with 53% YoY growth despite the absence of SOBI.
  • Currently, the company has strong balance sheet with net cash position to support further growth.
  • We maintain our recommendation and target price Rp1,900 implying 15.6x–14.9x PE’11F–12F. Maintain BUY.