JPM NO cement cartel in Indonesia

Cement decision – the anti monopoly body (KPPU) did not find evidence of a cartel among the eight Indonesian cement producers. A relief for the three cement stocks Indocement (O/W), Semen Gresik (O/W), and Holcim. On the run-up to this important event, SMGR has underperformed the JCI by 9% over the past 1-mo, Holcim lagged by 5%, while Indocement has traded in-line. My take – buy Semen Gresik (SMGR) on FY11 P/E estimate of 12.1x (vs. Indocement on 15.3x).