Mandiri Sekuritas Alam Sutera: ASRI 1Q2010 earnings surge (ASRI, Rp215, Not Rated)

􀂄 ASRI reported 743% jump in net profit for its 1Q2010 result of Rp63bn, above the consensus estimate (+12.8%). As resulted from major contribution of the commercial area sales last year (70% of total sales) the company enjoyed better net profit margin this quarter(30% 1Q10 vs 14.6% 1Q09), which led to boost up in bottom line.

􀂄 In 2010, despite its further focus on the development of its commercial area, the company will develop some other more investment properties, including fashion mall and the extension of its current success flavor bliss dining area. As per 1Q10, the company recorded Rp1.2tn marketing sales, thus running above its FY10F target (37% of FY10F).

􀂄 Based on recent revaluation of the landbank (Rp8.3 tn), ASRI is now trading at 51.6% discount to its NAV. We don’t have recommendation on the stock.