Bahana Securities Astra Agro's CPO sales volume up 2.7% y-y in 2M10

Astra Agro Lestari (AALI-HOLD-IDR24,400-TP:IDR24,300) booked 2M10 CPO sales volume of 157k tons or up 2.7% y-y, despite 4.7% y-y lower production in the same period. 2M10 CPO sales volume accounting for 14.1% of our FY10 expectations, which still in line in our view since 2M09 volume accounting for 14.5% of FY09. Around 87.5% of total CPO were sold to domestic market, while the rest 12.5% were sold overseas. It is worth noting that AALI's 2M10 average CPO price was up 24.3% y-y to IDR6,456/kg from IDR5,192/kg, translating into sales revenue of IDR1,013b or up 27.6% y-y from IDR793.7b in 2M09. Hence, we believe that AALI's performance up to Feb 2010 still in line with our forecasts. (Company, Bahana, Bisnis Indonesia)