Mandiri Sekuritas AKR Corporindo: FY09F net income was in line with our estimate, but 7% below consensus (AKRA, Rp950, Buy, TP: Rp1,300/share)

􀂄 AKRA posted FY09 revenues of Rp8.96tn (-5.4%yoy, +11.9%qoq). This translates to net income of Rp275bn (+30.8%yoy, +1.9%qoq)

􀂄 Revenues increase was due to strong 2H09 sales supported by fuel sales volume that up by 53% due to strong demand from coal companies in Kalimantan. This positive result is slightly negated by weakening performance in chemical distribution division.

􀂄 The company posted forex loss reversal from Rp149bn loss to be Rp50bn gain due to strengthening Rp. As we expect strengthening Rp in 2010F, we expect this forex gain will be booked again in 2010F. Starting in 2010, the company will also start to enjoy tax reduction benefit of 5% due to higher floating shares as a results of last right issue.

􀂄 We still maintain Buy recommendation on AKRA which is trading at PER10-11F of 9.5-7.5x.