Mandiri Sekuritas Ramayana Lestari: 1H10 results below ours and consensus estimates (RALS, Rp880, Neutral, TP: Rp800)

􀂄 RALS reported 1H10 net profit of Rp49bn (-38.5% yoy), represented 12.4% of our FY forecast and and 12.1% of consensus estimates.
􀂄 The company’s 1H10 sales grew by 13.8% yoy and 18.3% qoq, while 1H10 operating margin reached 1.8%, which decreased from 3.1% in 1H09 (vs our target for FY10 of 7.0%)
􀂄 At current price, RALS is trading at 2010F PER of 15.7x. We maintain our Neutral recommendation on the counter.

Mandiri Sekuritas Summarecon Agung: SMRA net profit surged by 47.9%, in line with ours (SMRA, Rp880, Buy, TP:Rp1,130)

SMRA reported earnings surge by 47.9% yoy to Rp101.6bn, which is in line with our expectation, but slightly below consensus estimates. This was a result of higher revenue which increased by 26.8% to Rp677.6bn, following company’s sales pick up in 2009 by 31.5%, which up to realization this year. SMRA trades at 46% discount to our NAV10, and PE10 26.3x. We have Buy recommendation on the stock.