Tuesday, April 12, 2011

International Nickel Indonesia (INCO)

by Mandiri Securities

Inco: FY10 results inline, 99.2% ours, and 105.4% consensus (INCO, Rp4,750, Buy, TP: Rp6,700)

INCO reported FY10 audited results inline, 99.2% ours, and 105.4% consensus

There’s significant changes compare to the unaudited results. INCO reported FY10 net profit of US$437.4mn (+156.6%yoy, -0.7%qoq) followed by strong revenue growth of 67.7% yoy up to US$1,276.3mn due to stronger sales volume of 77,035tons (+13.7%yoy, -10.0%qoq) and higher average selling price of US$16,568/ton (+47.6%yoy,+13.8%qoq)

Company has confirmed that so far its export sales to its shareholder’s Sumitomo (contributes around 20% of total sales) is not directly affected by the devastated tsunami in Japan, since the main destination of its export to Sumitomo is in Matsuzaka, southern west of Tokyo city.

Currently we have Buy rating on the stock, INCO is traded at 10.7xPER11F

1 comment:

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