JP Morgan - Indofood: very strong 2Q10 results (Stevanus Juanda)

INDF’s 1H10 profit rose 76.4% Y/Y, and core net profit rose 132.1% Y/Y. Historically, 1H has contributed to 56.2% of full-year net profit. 1H10 net income accounts for 59.2% of Steve’s full year forecast, but above the consensus (63.5% of full year). Sequentially, 2Q10 core net income was up 41.0% Q/Q, driven by almost 500bp margin improvement. On Steve’s forecast, the stock trades on 16.3x and 13.9x FY10-11 P/E.