Indofood Agri:
3Q10 net profit +13% qoq, -8.7% yoy, at Rp 360tr, beats expectations of Rp300-340tr.
Revenue +10% qoq to Rp 2.3tr, on the back of higher sales volume of cooking oil and margarine, palm kernel sales, and higher selling prices, but -7% yoy due to lower CPO sales to external parties as IFAR channeled more CPO towards refining. As a result, gross margins continued to expand, to 37.5% in 3Q10, from 30.9% a yr ago. CPO pdtn +19% qoq, to 201MT, due to peak pdtn season…
Mgt expects int’l CPO prices to stay firm, driven by tighter palm oil supply from the major palm producing countries (i.e. Msia, Indon) and potentially tighter-than-expected global veg oil supply & inventories arising from adverse weather conditions. Expects demand outlook to remain positive in 2011 with the improving global economic climate, supported by robust consumption growth from India, China, and coupled with stronger demand for biodiesel driven by govt mandates in EU, Brazil and Argentina.
Stock trades at 24x trailing PE.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment