Indofood Sukses Makmur (INDF) – BUY
Price: Rp5,200 – Target Price: Rp6,000
Outstanding bottom line
- INDF’s 9M10 revenue grew slightly by 0.4% YoY, while net profit grew by 42.6% YoY.
- While on QoQ, revenue went up by 15.6% and net profit increased 7.5%.
- INDF’s 9M10 net income was above expectation, accounted for 105% of our FY10 estimate.
- We revised our net income forecast by 24.6% and 22.7% for FY10 – FY11 respectively after factoring in the decrease of COGS although noodles and bogasari volume grew QoQ and further supported by stronger Rupiah.
- New TP at Rp6,000, implying 17.2x PE‘11F, offering 15% upside. BUY.