CIMB Indocement Result note - Steady as it goes

(INTP IJ / INTP.JK, OUTPERFORM - Maintained, Rp11,050 - Tgt. Rp15,000, Construction and Materials)

Maintain Outperform on Indocement. 9M09 results met our expectations, forming 77% of our FY09 estimate. We expect a consensus upgrade as the results already form 82% of consensus expectations for FY09. We are maintaining our earnings forecasts and target price of Rp15,000, based on DCF (WACC 13%, LTG 5.5%). Catalysts should include margin expansion due to cost cutting and sales volume growth in 2010.