Mansek Gajah Tunggal:points from annual public expose (GJTL,Rp2,075,Not-rated)

1H10 revenue was Rp4.8tn (+27.3%yoy)and net profit was Rp415bn (+188.2%yoy)
Sales volume in 1H10: radial tire was 5.1mn unit(+54.5%yoy),bias tire was 2.1mn unit(+31.3%yoy)and motorcycle tire was 10.1mn unit(+23.2%yoy).
Production capacity by 1H10:radial tire was 37,000tire/day (utilization rate:77%),bias tire was 13,600tire/day (utilization: 87%),motorcycle tire was 67,000tire/day (utilization:85%),synthetic rubber was 60,000ton/yr (utilization:55%)and tire cord was 36,000ton/yr (utilization:66%)
GJTL plans to increase production capacity for radial tire gradually to become 40.000tire/day and 45,000tire/day by end 2010 and 2011,respectively;and motorcycle tire will expand gradually to become 75,000tire/day,95,000tire/day and 105,000tire/day by end 2010,2011 and 2012,respectively.
The radial tire capacity expansion is supported by increasing demand from Michelin.In FY09 tire sales to Michelin reached 1.9mn unit.This year tire demand from Michelin totaling 3mn unit and become 4mn unit and 5mn unit in 2011 and 2012,respectively.
Capex allocated in FY10F amounting to US$40mn,around US$20mn is allocated for expansion and the remaining is for maintenance and working capital.
Currently,we do not cover GJTL.Based on Bloomberg estimates,it is trading at PE11F of 7.8x.