NISP Astra Agro Lestari posts stable sales volume in 8M10 (AALI, Rp21,250)

· During 8M10, AAL sold 689,446 tons of CPO or relatively stable as it was only 0.8% YoY lower compared to 8M09 period of around 695,000 tons. Despite posting a lower YoY basis, the company’s sales volume rose by 20.6% MoM in August to 115.8k tons from 96.0k tons a month earlier.
· This was AAL’s monthly highest sales volume this year and also coupled with stronger selling price of Rp6,967/kg compared to Rp6,428/kg in July 2010. Thus total ASP during 8M10 reached Rp6,631/kg.
· This data is positive as despite lower sales volume, the company’s 8M10 ASP of Rp6,631/kg was 4.9% YoY higher than Rp6,324/kg in 8M09.
· AALI is trading at 2011F PER of 17.0x and EV/EBITDA of 9.2x.