Mandiri Sekuritas Ramayana Lestari: 1H10 results below ours and consensus estimates (RALS, Rp880, Neutral, TP: Rp800)

􀂄 RALS reported 1H10 net profit of Rp49bn (-38.5% yoy), represented 12.4% of our FY forecast and and 12.1% of consensus estimates.
􀂄 The company’s 1H10 sales grew by 13.8% yoy and 18.3% qoq, while 1H10 operating margin reached 1.8%, which decreased from 3.1% in 1H09 (vs our target for FY10 of 7.0%)
􀂄 At current price, RALS is trading at 2010F PER of 15.7x. We maintain our Neutral recommendation on the counter.