Indofood Agri

Indofood Agri: CIMB maintains U/p with $0.81 TP. House came away from its 2Q results briefing with a more cautious outlook as it lowered its FY13 production guidance to account for the poor weather and social issues. This, coupled with the subdued selling prices and higher costs, will continue to put pressure on 2H earnings. The group now expects its FY13 production to decline by 5% instead of its previous guidance of 5-10% growth. As a result, house lower EPS by 36-41% for FY13-15. However, recently downgraded target price (15% discount to SOP) which has already taken into consideration the weak results, remains intact.