Mandiri Sekuritas Budi Acid Jaya: FY09 net income is inline with our estimate and consensus (BUDI, Rp230/share, Buy, TP: Rp300/share)

􀂄 Budi Acid posted FY09 revenues of Rp1.8tn (+14.8%yoy, +3.1%qoq) and net income of Rp146bn (+343.9%yoy, +84.9%qoq), which is in line with our estimate and consensus.

􀂄 YoY net income growth was mainly due to forex loss reversal from Rp49bn loss to Rp73bn gain, in addition to better ASP and sales volume.

􀂄 We expect the company to continue its strong profitability in 2010F supported by higher ASP and sales volume. Based on their policy, with more than Rp40bn net profit, the company should pay 40% dividend payout, translating to 6.8% dividend yield from 2009 net income.

􀂄 We still maintain Buy recommendation for BUDI which is currently trading at PER10-11F of 5.1x-4.3x.