Mewah

Mewah: Poor results: Rev at US$1.1b +39.4%yoy +5.2%qoq. Net profit at $17.2m -7.9%yoy -52.3%qoq. Net profit gains were boosted by forex gains of $19.4m without which co would have booked a loss. Sales volume fell both in bulk and consumer with total volume at 856.4k MTs -10.8%yoy -13.8%qoq attributed to CNY and scaling back of ops in Middle East…

ASP at US$1302.3 per MT. increased +56.3%yoy +22.1%qoq but was insufficient to pass on all the increase in raw material costs. Future quarters expected to be strong with Middle East to resume restocking of inventories and new cocoa butter substitutes, soap and shortening plants to come online in 2H11. BNP maintains Buy with TP$1.33.