FR CGS-CIMB (YU) : Indofood Sukses Makmur
3Q18F preview: still counting on CBP for growth
Mkt.Cap:US$3,469.00m | Avg.Daily Vol:US$2.59m | Free Float:49.90%
Food & Beverages
Author(s): Patricia GABRIELA +62 (21) 3006 1734,
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■We estimate INDF’s 3Q18 earnings fell 21% yoy, pressured by Bogasari and agribusiness, with 9M18 earnings down 16% yoy.
â– We expect its growth to depend on the CBP subsidiary, ICBP which focuses on instant noodles. Other commodity segments may continue to drag growth.
â– Given CBP remains the growth driver, its valuation gap with ICBP may not narrow, unless CPO price turns bullish. Maintain Hold with a slightly lower TP.
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