Mandiri Sekuritas Budi Acid Jaya: 1Q10 net income was below our forecast and consensus (BUDI, Rp240, Buy, TP: Rp300)

􀂄 BUDI posted 1Q10 net income of Rp17bn (+92.1%yoy, -54.9%qoq), which is below ours and consensus FY10F estimates.

􀂄 Worsening operational performance was mainly due to higher raw material price as a result of low harvest, while improvement in yoy net margin was due to forex loss reversal in 1Q10.

􀂄 We have Buy recommendation on BUDI which currently is trading at PER10-11F of 8.0-6.9x.