5 APRIL 2013

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We cut our earnings for GGRM by 9%-13% for 2013-14 and increase our short-term 
leverage assumption, as this is a good timing for the company to stock up its 
tobacco and clove inventories. The minimum wage hike should partially offset 
the risks of erosion in consumer purchasing power. We remain NEUTRAL on the 
stock, with a DCF-based target price of IDR49,000, implying 18x 2013 PE.
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