Sent: Thursday, November 29, 2007 1:33 PM Subject: IND: Indofood Sukses Makmur - Commodity-led growth
29 November 2007 Indofood Sukses Makmur (INDF IJ / INDF.JK, OUTPERFORM - Maintained, RP2,550 - Target: Rp3,100) Company update - Commodity-led growth by Erwan TEGUH We expect Indofoods EBIT to grow by a 3-year CAGR of 28%, some 37% in FY08 alone, largely on the back of the CPO price strength. In the aftermath of the timely Lonsum acquisition, edible oils should contribute 29% to FY08 revenue and two-thirds of EBIT, in our estimates. The commodity price strength gives management the luxury to implement more aggressive price hikes for instant noodles, we believe. We see upside risks for volume and prices from our base case for FY08. We upgrade our FY07-08 earnings estimates by 7-13% with higher CPO price assumptions being the main drivers. Consequently, we upgrade our target price to Rp3,100 from Rp2,800, still based on DCF methodology (9.5% WACC). Maintain Outperform. Full Report [ Click here ] or the URL below http://www.gohdirect.com/NASApp/spaf/econtent/ind/Indofood-291107.pdf To view these reports, you need to have Adobe's Acrobat Reader. To download a free reader, click here. PS: if you wish to Opt-Out or Change your Mailing Details, please send an email message to [EMAIL PROTECTED] Otherwise call your respective Salesperson. [ The contents of this e-mail may be confidential. Do not disclose, copy or distribute it if you are not the intended recipient. It may also be unlawful to do so. This e-mail is sent without any implied warranty or representation as to the accuracy or completeness of its contents, or as to the authority of the sender to send it. Do not rely on its contents without written confirmation from a duly authorised employee of CIMB. Please notify [EMAIL PROTECTED] if you have received this message in error. ] Disclaimer: This email may contain privileged and/or confidential information intended only for the use of the addressee. If you are not the addressee, or the person responsible for delivering it to the addressee, you may not use, copy or deliver this to anyone else. If you receive this email by mistake, please immediately notify us. Opinions contained herein may be the personal opinion of the sender and do not necessarily represent the views of the Company. If you are in any doubt as to whether the opinions are officially endorsed by the Company, please contact our Compliance Dept at (+65) 6225 1228 for clarification. --------------------------------- Be a better pen pal. Text or chat with friends inside Yahoo! Mail. See how.
