by DBS Securities
Astra Agro Lestari: Buy; Rp23,050; TP Rp28,100;
Astra Agro Lestari reported that it had produced 108,650 MT of CPO in May11. YTD May, it had produced 485,889 MT of CPO – a 28% increase over the same period last year, reflecting 41% of our FY11 CPO production forecast. The stronger CPO production was driven by 23% jump in harvested FFB of 1,79 million MT, compared to 1,46 million MT harvested over the same period last year. It also reported palm kernel production at 100,865 MT, a y-o-y increase of 24%. For the full year we expect the group’s FY11 own FFB output to grow by 6% to 3,538k MT, while CPO production should also grow by 6% to 1,183k MT.
Maintain Buy for 22% upside to Rp28,100 TP