Indopremier GZCO - BUY (TP Rp 475)

In FY09, Gozco booked EPS of Rp41, rising 3.7 times of FY08 on the back of 40% revenue growth, stable margin and Palma acquisition (Palma contributed Rp58.6 bn or 29% to net profit). This year, we expect Palma to add even more (49% or Rp123 bn) to Gozco’s earnings. Hence, we forecast both 22% EPS increase in FY10F and FY11F by additional mature area, Palma’s contribution, higher CPO price and robust margin. Furthermore, Gozco has more than 110.000 ha of landbank to ensure its growth in the future. BUY.