Rokok kesukaan Embah
Gudang Garam (BUY): 1Q09 net profit above expectation
· Gudang Garam posted 1Q09 net profit of Rp780b, up 102% YoY.
· Revenue was up 11% YoY to Rp7,650b.
· Gross profit increased 58% YoY to Rp1,680b.
· Operating profit was up 94% YoY to Rp1,192b.
Comment:
· The result came in above expectation.
· The 11% revenue growth was supported by increase in production
volume. Based on data on excise ribbon purchase, Gudang Garam production
volume shows a 32% increase in 1Q09.
· The company managed to curb increase in costs and expenses. Hence,
big improvement in profit margins.
· Gross margin was up to 22.0% from 15.4% in 1Q08 while operating
margin increased to 15.6% from 8.9% in the same periods.
· At Rp7,450. Gudang Garam share price has increased 25% in less than a
month since our latest report dated 1 April 2009 (“Unjustifiably Cheap”), it
has basically reached our TP of Rp7,500.
· We are revisiting our forecast due to the strong result. BUY, TP is
Rp9,600 (translates into 1x 2009F PBV, 8.8x 2010F PER).
Rp bn
1Q09
1Q08
% Chg
Sales
7,650
6,906
11
Costs of goods sold
5,970
5,842
2
Gross Profit
1,680
1,063
58
SG and A
488
448
9
Op. Income
1,192
615
94
Pre-Tax
1,091
509
115
Net Income
780
336
132
Margins (%)
Gross Margins
22.0
15.4
Operating Margin
15.6
8.9
Pre-tax Margin
14.3
7.4
Net Margin
10.2
4.9
Katarina Setiawan
ksetia...@kimeng.co.id
