JP Morgan - SMGR Mixed bag, but upward revision coming due to low expectations

SMGR reported earnings of Rp803bn for 1Q10, up 18% y/y and down 13% q/q. This is in line with both our estimates and consensus. Sales volume in 1Q10 rose by 12% y/y, but was down by 11% q/q due to seasonality effects. The company's 1Q10 sales volume is 23% of our FY10 forecast.