Mandiri Sekuritas Sampoerna Agro: 9M09 indicative revenue was in line with our expectation (SGRO, Rp2,475, Buy, TP: Rp2,200)

SGRO’s FFB production until 9M09 fell by 0.8% yoy to 827k tons. But, in term of qoq view, CPO production up by 62.7% yoy to 180k tons, mostly due to substantially higher production in Sumatra area. These figures resulted in unaudited sales of around Rp1.2tn in 9M09, in line with our forecast. We positively view the company’s production as it is above market expectation. At Rp2,475/share, the stock is trading at EV/ha of US$4,528, still lower than average plantation companies of US$12,418 (using exchange rate assumption of Rp9,200/US$). Currently, SGRO is trading at PER10F of 13.1x.