Mandiri Sekuritas Adhi Karya: A slow start, yet it may reach our FY10 target (ADHI, Rp590, Buy, TP: Rp800)

􀂄 ADHI’s 1Q10 revenue drop 29.5% yoy, quite a slow start yet still inline with our and consensus estimates as historically, 1Q only represents around 10-17% of FY figure. We also note that margins are improving thus the company could book operating profit from operating loss in 1Q09. A lower figure in the bottom line level is because the company booked Rp44bn gain from asset sale in 1Q09, whilst there was no additional income in 1Q10. The company is currently trading at a relatively low PER10 of 6.0x.