Bahana Securities ADHI FYO9 results: Net profit was 96% and 56% higher than our and consensus estimates

Adhi Karya (ADHI–HOLD–IDR415–TP: IDR450) reported strong 4Q09 earnings of IDR101b (+365% q-q), bringing 2009 net profit to IDR166b (+103% y-y), significantly higher than our and consensus estimate. Robust growth in 4Q09 net profit stemmed from 1) acceleration of projects completion in 4Q09, translating into a revenue growth of 55% q-q to IDR2.9t; 2) profit from joint operation projects of IDR48b (+363% q-q); 3) management costs efficiency program, resulting in 4Q09 operating profit of IDR407b (+483% q-q) and margin expansion to 14.3% compared to 3.8% in previous quarter and 4) foreign exchange gain of IDR10b. As ADHI reported higher than expected 2009 performance across all fronts, we are likely to revise up our rating on the stock.