CIMB Unilever Indonesia Result note - Too early to tell

(UNVR IJ / UNVR.JK, UNDERPERFORM - Maintained, Rp10,700 - Tgt. Rp11,200, Consumer)

Maintain Underperform on Unilever. We have raised our earnings estimate for FY09 by 2% on the back of changes in our cost and currency assumptions and raised our target price to Rp11,200 (from Rp8,730), still based on 24x P/E (63% premium to JCI based on historical average) but rolled over to CY10. 9M09 earnings were ahead to our estimate, adjusted for seasonality, forming 83% of our FY09 forecast mainly due to lower cost spent during the period compare to our previous estimate. Yet, we haven't seen improvements in Unilever's financials following competition with P&G in personal care products. Thus, we maintain Underperform.