Mansek Sampoerna Agro:1H10 results inline with ours and consensus estimates (SGRO,Rp 2,475,BUY,TP:Rp3,150)

SGRO reported 1H10 net profit of Rp131bn (+37.8%yoy),represented 34.4%of our FY forecast and 32.9%of consensus estimates.Please note that 1H results in 2007 and 2009 accounted for 31-34%of FY results,thus led to this year ’s 1H result was basically in line with our expectation.

The company ’s sales grew by 33.2%yoy,higher than in 1Q10 of 46.8%qoq,while operating margin reached 25.8%,an improvement from 21.2%in 1Q10 (vs our target for FY10 of 24.7%)

At current price,SGRO is trading at 2011F PER of 10.1x.We maintain our buy recommendation on the counter.