• Semen Gresik (SMGR) plans to acquire a regional cement producer with 2-3mn tons production capacity to boosts its annual capacity and to expand its market coverage. The management stated that they have prepared US$300mn investment cost to execute this plan slated for this year. However, they did not give further details regarding the targeted company’s profile.
• In the meantime, the company also cited another alternative is to acquire a domestic cement company, namely Semen Baturaja in Sumatera with annual capacity of 1.2mn tons. We believe that acquiring a domestic cement company would be wiser for Semen Gresik rather than striving to be a regional player as domestic cement demand still offers ample growth with higher profitability also.
• Currently SMGR is trading at 2010F PER of 12.9x and EV/EBITDA of 7.9x, Buy.
Tidak ada komentar:
Posting Komentar