Friday, September 5, 2014

PT Holcim Indonesia Tbk - Higher Costs Reduced Bottom-line Performance

SMCB sales grew by 10.0% yoy, however its bottom line profit declined by 3.8% yoy due to higher costs and meeting only 35.6% from our FY14F. The outlook in the mid-term is still favorable though as SMCB will reap result from its expansion plans as well as government’s infrastructure project. We roll forward our valuation to FY15F and upgrade our TP to Rp3,250. BUY.

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