In yesterday ’s analyst meeting,SMGR indicated its attempt to slightly increase selling price in the past several months.Yet,they have to adjust back to its previous level given it lowered their market share.In other way, such upward adjustment was not followed by its competitors,in our view.
In terms of the de-bottlenecking process,the progress was still inline with their schedule.Considerably low sales volume in 1H10 was due to several maintenances activities.In 2H10,they could again increase its production level.Such bottlenecking and maintenances will reduce its cost/ton in near future.Despite the above mentioned condition,we view that selling price could still go up next year,once new electricity tariffs start to have an affect to all cement companies.Even without such increase,we believe margin could still be maintained or slightly increases due to the efficiencies
programs undertaken.The company is currently trading at PER10-11F of 14.2x-12.3x.
Tidak ada komentar:
Posting Komentar