JP Morgan - UNTR: Earnings momentum waning

After continuously beating expectations for the last 4 quarters, we see UNTR’s 1Q headline profits as slightly underwhelming. Net profits (after stripping out Rp 42 bn in post tax non-recurring income that we had factored in) of Rp 866 bn were up 7% y/y and flat q/q despite stronger sales volumes, and came in about 14% lower than our forecasts.