IndoAgri

IndoAgri: firm 4Q13 results. Revenue grew 13% y/y to Rp3.75t, driven by strong recovery in commodity prices for agri crops and higher sales volume of palm products and branded edible oil products. Net profit jumped 32% to Rp255b, on improved gross margin of 31.8% from 28% a year ago, as operating profit surged 53% y/y to Rp769b boosted by higher profit contribution from the Plantation Division. On a full year basis however, revenue fell 4% to RP13.3t mainly due to lower edible oil sales, while net profit plunged 49% to Rp550b, mainly due to lower gross profit in tandem with lower average selling prices for plantation crops, as well as FX losses. Operationally, IndoAgri achieved FFB nucleus production of 2.9m tons (-2.6%) in FY13, while CPO production of 810,000 tons (-8%) was mainly due to lower purchases of FFB from external parties. 2013 marked the group’s first investments outside of Indoneisa as it expanded into the global sugar industry through a 50% stake in CMAA in Brazil and a 30% JV FPNRL that invested 34% in Roxas in the Philippines. IndoAgri will pay a first and final dividend, and will decide on the payout by end Mar (FY12: 0.85¢). FY13 EPS was Rp 753 (8.2¢), NAV Rp 9,883 ($1.077). This translates to 10.8x P/E, 0.8x P/B.