CIMB Enseval Putera Megatrading

Result note - Amazingly attractive - by Erwan Teguh
(EPMT IJ / EPMT.JK, OUTPERFORM - Maintained, Rp435 - Tgt. Rp715, Healthcare)

Enseval's FY08 net profit was Rp267bn, up 15% yoy on 16% sales growth, with core profit of Rp254.4bn forming 106% of our forecast on higher-than-expected margins. Net cash more than doubled to Rp306bn or Rp134/share, or over 30% of its share price, courtesy of better working-capital management and strong operating cash flow. We increase our earnings estimates by 12% on 50bp higher EBIT margin assumptions. Maintain Outperform with a higher target price of Rp715, up from Rp600, applying a 40% discount to our P/E target for Kalbe, which implies 4.6x CY10 earnings. Maintain Outperform.