Mandiri Sekuritas Mayora: 1H10 results are inline with ours and consensus estimate (MYOR, Rp8,400, Buy, TP: Rp9,000)

􀂄 MYOR posted 1H10 net income of Rp211bn (+29%yoy, -22%qoq), which is inline with ours and consensus estimate.
􀂄 The decline in net profit was due to heavy ads expense in 2Q10 that increased by 73%qoq and 75%yoy. Considering seasonality effect, we expect the company will be better in 2H10.
􀂄 We have Buy recommendation on MYOR which currently is trading at PER10-11F of 13.1-11.3x.

Mandiri Sekuritas Semen Gresik: To acquire cement producer in Southeast Asia (SMGR, Rp8,250, Buy, TP: Rp9,400)

SMGR plans to acquire cement producer, which located in Southeast Asia region in order to increase its capacity. Rumor said that they are eyeing Cement Industries of Malaysia Berhad (CIMA). They budgeted around US$300mn to acquire cement producer which has 2-3mn tons of capacity. Note that CIMA has total cement production capacity of 3.4mn tons, thus the US$300mn acquisition is equal to EV/ton of US$88, assuming they have no debt. Should realized, this will bring positive outcome to SMGR as they will have an additional capacity without having to wait its new plant in which currently under construction. SMGR is currently trading at PER10F of 13.1x and the lowest EV/ton of US$249.

Mandiri Sekuritas Semen Gresik: 1Q10 net profit grew 17.8% yoy, inline with consensus estimates (SMGR, Rp8,200, Buy, TP: Rp9,400)

SMGR booked a relatively flat growth in the top line level, of only 0.6% yoy. This is lower than its sales volume growth of 7.1% yoy. It thus suggests that there was no increase in the domestic average selling price. This is inline with our and consensus estimates, as historically 1Q-to-FY figure stood around 21%. Despite relatively flat ASP, the company was able to booked better margins. Thus bottom line growth is higher of some 21.6% yoy. SMGR is currently trading at the cheapest EV/ton of US$247. That said, we maintain our Buy recommendation with a price target of Rp9,400/share.

Mandiri Sekuritas Bank Rakyat Indonesia: BBRI Net Profit 1Q2010 Perk Up (BBRI, Rp8,650, Neutral, TP: Rp9,400)

􀂄 BBRI posted an increase 25.1% in net profit for its 1Q2010 result to Rp2,151, which in line with our expectation and consensus estimates.

􀂄 The bank’s Net Interest Income increased by 24.1%, as the bank maintained to push the credit growth by 27.7% yoy, to arrive its interest income surge by 15.4%, supported by sustainable interest expense. NPL of the bank stood at 4.1%, led the bank to book provisioning expenses Rp1,420 bn (vs. Rp886 bn FY09). However, the strong Net Interest Income, as well as flat operating expenses, assisted the bank to post sound net profit figure.

􀂄 BBRI booked gross loan at Rp212,230 bn (+3.3% qoq). However its deposits declined by 4%, due to seasonality at the beginning of the year, resulting LDR up to 86.5% (vs. 81.4%). ROAE remained strong at 33.6% (vs 33.7% FY09) as well as CAR at 15.4% (vs. 14.9%).

􀂄 BBRI currently trades at P/BV10 3.1x and PER10 11.8x. We have Neutral recommendation on the counter.