Mansek Aneka Tambang:1H10 net profits of Rp756bn up by more than 2-folds yoy;above ours and consensus (ANTM, Rp2,050,Neutral,TP:Rp2,500)

Due to the switch in revenue contribution from low-margin gold trading last year to higher margin nickel this year as well the improvement in selling prices of the latter,Antam ’ s 1H10 net income improved by 238%yoy to Rp756bn,despite a relatively flat top-line of Rp4.3tn(-2.1%yoy),thus running ahead of ours and consensus estimates.Additionally on the production side,the divisional production remains within FY10F target with nickel and gold production rates achieving 50%and 54%of FY10F.Currently,the stock trades at PER10F 16.7x.Additional upside would come from the appreciation of nickel prices (at US$20.6k/t as of 1H10)which runs at par with our FY10F price assumption of about US$21k/ton.