BNP Paribas Astra Agro Lestari - BUY

Astra Agro Lestari - BUY
Price 10900, TP 12600, Mkt cap $1,533m, Avg t/o $6.0m

We maintain our BUY call on Astra Agro and raise our TP to IDR12,600 as we
still see more room for price appreciation given Astra Agroâ?Ts good
fundamentals and limited choice in the sector. Astra Agro is still our top
picks for LT investment in plantation sector in Indonesia, given its leaner
cost structure, strong and conservative management and high dividend payout.

Other key points in the report:

- While the 2008 production figures were broadly inline with our
forecast, nonetheless, there actual top line could be slightly higher
than our estimates.
- The managementâ?Ts is now less aggressive in expanding estate. The
main
focus this year will be directed toward proper upkeep and cultivation of
the immature estate.
- The governmentâ?Ts plan to subsidize biofuel is positive as it is
signaling the governmentâ?Ts seriousness in kick starting the mandatory
usage of biofuel in Indonesia.

Please find the attached file for the report.

2008E: Rec EPS 1475, P/E 7.4, P/B 3.2, ROE 49.1, Yld 5.7
2009E: Rec EPS 1045, P/E 10.4, P/B 2.9, ROE 29.2, Yld 6.8
2010E: Rec EPS 1662, P/E 6.6, P/B 2.2, ROE 38.6, Yld 4.8