Saturday, July 30, 2011

SSIA fairly valued at Rp1,540.

SSIA:
2011 net profit could rise by 348% to exceed IDR520 billion (EPS: IDR110) due to higher sales which could rise to IDR3.9 trillion from IDR1.6 trillion a year earlier. First quarter net profit was at IDR127 billion vs 2010 FULL YEAR net profit of IDR116 billion. It is now trading at a p/e ratio of ONLY 4X its 2011 forward earnings, far below the property industrial average p/e ratio of 14X. At that average, SSIA should be fairly valued at IDR1,540. On a simple DCF method, my 12-month target is at IDR900.

source: rumor from BBM

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