CLSA UNVR 1H10 Result

Unilever reported Rp1.77tn in net profits for 1H10, 50% of full year estimates.
The stock is at 30x 2011CL earnings and we would take profits here as competition is intensifyin in the fourth largest populated country in the world and inflation is also inching up

Unilever Indonesia: Operating profits and net profits in line: 50% of full year estimates

Operating profits are down 19% qoq and up 5% yoy. Operating expenses grew faster at 15% qoq and 23% yoy vs. revenue growth of 0% qoq and 11% yoy.

Competition is intensifying and this will slow Unilever’s growth as it aggressively protects market share

Investment conclusion: Take profits. The stock is at 30x 2011CL P/E and 26x 2012CL P/E