CLSA INDO UPDATE - SMGR 9M09 RESULTS BETTER THAN EXPECTED

SMGR result

Nick's comment:
- Strong signal about sector earnings for INTP and SMCB upcoming.
- Our past estimate on this SMGR was low
- Great margin control.
- revenue up 18% YoY, GP 26%, OP 28% and NP 34%.

It had also beat consensus' expectation (9M09 was 85% of FY2009FC consensus).

* Semen Gresik's total sales volume in 9M09 reached 12.97m tonnes or a decrease of 1.5% yoy
* Domestic sales volume increased by 0.2% yoy to 12.39m tonnes. domestic sales was 97% of total sales
* EBITDA mgn increased from 31.6% to 32.5% due to the increase in revenue and effort in controlling production cost. Revenue increased mainly due to higher ave price this year compared to last year. Price was flat for 9M09 this year
* SMGR said that October Sales should be fantastic (maybe doubling from Sep). INTP had also said Oct sales should be very good.