Malindo Feedmill (MAIN) – Hold (Downgrade)
Price: Rp3,395 – Target Price: Rp3,620
Forex loss leads to 20% YoY net profit decline
- MAINS’s net profit FY13 came in at Rp242bn, 28% below our previous estimate of Rp337bn and 29% below market estimates of Rp341bn. Results were in-line on revenue basis at Rp4,193bn compared to our estimate of Rp4,189bn.
- On a YoY basis, revenue increased by 25% but net income declined by 20% with gross margin falling by 2% and forex loss of Rp106bn due to the 24% Rupiah depreciation from 2012YE to 2013YE.
- However when the effect of forex loss is removed and core earnings in FY13 are compared to FY12, core earnings increased by 12% YoY. [Read more...]