Mandiri Sekuritas Holcim Indonesia: Net profit grew 38.0% yoy, slightly below expectation (SMCB, Rp2,425, Neutral, TP Rp2,500)

Higher domestic sales volume (+19.0% yoy) boost 1H10 revenue to Rp2.8tn (+8.1% yoy). This shows that average selling price was lower compared with 1H09. Nevertheless, margins improved given lower cost/ton. Thus, 1H10 net profit grew 38.0% yoy to Rp386bn. Overall, the figures are inline with ours, yet slightly below consensus’ estimates. SMCB is currently trading at EV/ton of US$259, vs average peers of US$296.