Indofood Sukses Makmur (INDF) - Excellent FY10 Net Profit

Indofood Sukses Makmur (INDF) – Maintain BUY
Price: Rp5,000 – Target Price: Rp6,000

Excellent FY10 net profit

  • For FY10, INDF recorded 3% YoY revenue growth to Rp38.4 trillion and 42% YoY net profit growth to Rp2.95 trillion.
  • The overall performance QoQ basis in 4Q10 was lower compared to the previous period with revenue and net profit declined by 1% and 16% respectively.
  • The revenue result came in-line with our estimate while net earnings was slightly above our projection.
  • Operating and net margin grew to 18% and 8% respectively mainly due to lower raw material cost and stronger Rupiah.
  • Lower interest expense as a result from debt repayment using ICBP IPO proceeds
  • Currently, INDF is trading at 14.4x PE’11F, we maintain our recommendation and valuation on the stock. Maintain BUY