Mandiri Sekuritas Citra Marga: net income 1H10 above our estimates and consensus (CMNP, Rp890, Neutral, TP: Rp1,100)

􀂄 The company posted 1H10 revenues of Rp365.7bn (+25.7%yoy), and net income of Rp399.5bn compared with Rp31.0bn in 1H09. The company booked unrealized gain from debt revaluation amounting Rp236.1bn. These results are above our estimates and consensus.
􀂄 We have a Neutral recommendation on CMNP, due to lack of new project, it trades at PER10F of 3.7x.

Mandiri Sekuritas Ciputra Development: CTRA 1Q2010 results below expectation (CTRA, Rp890, Buy, TP: Rp1,100)

􀂄 CTRA reported declined in earnings for its 1Q2010 results to Rp33.8 bn (-37.2% yoy), which below our expectation (- 42.6%) and consensus estimates (-37.5%). The low in bottom line figure, however, resulted from booking of company’s marketing sales mainly in late 2008, which due to the global downturn, the company was only able to meet on average 40% of its sales target.

􀂄 In addition, the income statement also gained pressure from forex loss of Rp17.4 bn, which the amount nurtured from company’s deposit in foreign exchange, which depreciated due to the strengthening Rupiah.

􀂄 However, we believe the low figure will not be occurring for the rest of the year, as sales pick up in 2009 will reflect supports in earnings throughout the year. In the mean time, the company keeps showing improvement in sales this year,
which as of Mar10, the marketing sales has booked 26.6% of total target this year, thanks to low mortgage rate.

􀂄 CTRA is currently trading at 38% discount to NAV10. We still maintain Buy on the stock.