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Wednesday, April 6, 2011

BW Plantation (BWPT)

by Kresna Securities

We maintain our BUY call on BWPT with TP of Rp2,025. FY10 revenue wasinline but net income beat our target by 8.0%. The company plans to bemore aggressive in increasing its modernization area and good progress inits new planting plan. We maintain our forecast, hence expecting FY11 andFY12 EPS to grow by 7.2% YoY and 34.2% YoY respectively. The counter istrading at FY11 PEG of 2.4x (vs. regional 0.5x). However, on 2012 basis thecounter is trading at 0.3x PEG, a 72.7% discount to regional’s 1.1x.

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