Mandiri Sekuritas Lautan Luas: 1Q10 net income was inline with our forecast (LTLS, Rp830, Buy, TP: Rp1,000)

􀂄 Lautan Luas posted 1Q10 net income of Rp24bn (+14.3%yoy, -1.5%qoq), which is inline with our FY10F forecast.

􀂄 Revenues in Rp declined by 8.1%yoy and 16.2%qoq due to strengthening Rp. It also results in lower gross margin. However, the company booked forex loss reversal so that net margin showed improvement.

􀂄 We have Buy recommendation on LTLS which currently is trading at PER10-11F of 5.8-3.6x.