KimEng Bank Mandiri (BMRI IJ): BUY - Robust metrics; maintain BUY

Bank Mandiri recorded profit of Rp7.2t in 2009, well above our estimates, driven mainly by strong interest and fee-based income. Management’s 15-18% y/y loan growth target for 2010 remains unchanged. Management expects that the rights issue may happen earliest by end-2010 given the multi-layered approvals required. Mandiri’s main intent is to qualify for the 5% tax cut as the rights will raise free float to 40% vs. the current 33%. Maintain BUY.