Mandiri Sekuritas Lautan Luas: 9M09 results are below our expectation (LTLS, Rp770, Buy, TP: Rp1,100)

􀂄 Lautan Luas’ 3Q09 net income dropped by 55.8% qoq, with 9M09 net income only represented 45.3% of our FY09F (no consensus for this stock)

􀂄 This lower bottom line was due to lower forex gain booked during 3Q09 of Rp33.6bn compared to Rp76.9bn in 2Q09.

􀂄 However, operating wise, the company showed better performance (qoq).

􀂄 We still maintain our Buy recommendation on LTLS with TP of Rp1,100/share. The stock is trading at PER09-10F of 4.5x-2.8x and PBV09-10F of 0.7x-0.6x.

􀂄 We are reviewing our forecast for possible downgrade on earnings estimates