Mandiri Sekuritas SMCB No growth spillage in 09

Holcim Indonesia posted FY08 revenue growth of 27.9% yoy due to bigger domestic sales volume (+8.0% yoy) combined with price increase of approximately 20% yoy. While growth on core profit level was even better (+134.6% yoy), reflecting better profitability. These figures are in line with ours and consensus estimates. However, bottom line came short of our expectations as the company recorded Rp532bn in forex losses. The losses beat out expectation as the rupiah ended the year weaker than our! forecast Despite the stellar performance in FY08, we believe it may not continue this year as was already indicated by the 12.0% yoy contraction in January sales volume. We therefore maintain our Sell stance with target price of Rp450/share.