Mandiri Sekuritas Gudang Garam: FY09F net income was in line with our estimate, but 13% above consensus (GGRM, Rp25,500, Buy, TP: Rp30,000/share)

􀂄 Gudang Garam posted revenues of Rp33tn (+9.0%yoy, +11.5%qoq), this translates to net income of Rp3.5tn (+83.8%yoy, -5.9%qoq).

􀂄 Despite of qoq growth in sales, 4Q09 gross profit was relatively flat while 4Q09 operating profit declined by 17.5%qoq. As the company increased 4Q09 selling expense by 148%qoq, we think the company was aggressively promoting their products through advertising and sales discounts. We will confirm it later after analyst meeting.

􀂄 We still maintain Buy recommendation on GGRM which is trading at PER10-11F of 11.6-10.2x.