CLSA Semen Gresik (SMGR IJ) results broadly in line, on the lower end

Semen Gresik reported earnings of Rp825bn for the 2Q10, up 3% QoQ and -1% YoY. 1H10 earnings was Rp1.6tn, up 8% YoY. This was 42% of our FY expectation.
Revenue up 5% QoQ, but down 4% YoY. Not a surprise, given domestic sales was also declined 3% YoY in 2Q.
GP margin stable at 47.5%, EBIT margin declined slightly to 30.4% from 31.1%. NP margin down slightly as well to 24.2%.