AKR Corporindo (AKRA)– Re-initiate with BUY
Price: Rp1,460 – Target Price: Rp1,900
Focusing on core business
- Divested SOBI to focus on main business.
- Booked gain on sale of subsidiary and we expect a special dividend of Rp174/share assuming 30% payout from the proceeds.
- Opportunity in petroleum market. AKRA is the only private company that is granted the right to distribute subsidized fuel by the government for the year 2011 due to the well-built infrastructure supporting the distribution.
- The future prospect is still bright for AKRA in the petroleum industry.
- Target price is Rp1,900 after factoring SOBI divestment, reinitiate with BUY.