Mandiri Sekuritas Semen Gresik: 1Q10 net profit grew 17.8% yoy, inline with consensus estimates (SMGR, Rp8,200, Buy, TP: Rp9,400)

SMGR booked a relatively flat growth in the top line level, of only 0.6% yoy. This is lower than its sales volume growth of 7.1% yoy. It thus suggests that there was no increase in the domestic average selling price. This is inline with our and consensus estimates, as historically 1Q-to-FY figure stood around 21%. Despite relatively flat ASP, the company was able to booked better margins. Thus bottom line growth is higher of some 21.6% yoy. SMGR is currently trading at the cheapest EV/ton of US$247. That said, we maintain our Buy recommendation with a price target of Rp9,400/share.