Mandiri Sekuritas ISAT: 1Q10 net income up 139%yoy, but lags behind expectations (ISAT, Rp6,050, Buy, TP: Rp5,400)

1Q10 net income was up by 139%yoy to Rp286bn, despite the jump, this fell below expectation as it represented only 18% and 16% our and consensus FY10F. Net adds in 1Q from 4Q09 was about 5.98mn (vs 4.4mn if 3Q09-4Q09), thus bringing its total cellular subscribers to some 39.1mn. With this, operating revenues grew by 2.5%yoy to Rp4.7tn, while EBITDA also grew by 3.3%yoy to Rp2.24, while maintaining a margin of 47%. The complete results and 1Q financial statements shall be released by May 10, 2010. We currently are reviewing our estimates and assumptions on Indosat, which trades at PER10F of 20.1x.x