ID - [ UNVR IJ]: Robust 9M18 On One-Off Gain; Lower To NEUTRAL
Andrey Wijaya - RHB Sekuritas
♦ Downgrade to NEUTRAL from Buy with a new DCF-based IDR46,900 TP from IDR50,500, offering 7% upside plus 3% yield – this implies 45-43x FY19-20F P/Es.
♦ 9M18 earnings – which jumped 40% YoY – beat, but this was driven by a one-time gain from the spreads business divestment.
♦ Excluding this, 9M18 earnings slightly missed.
♦ We raise FY18F net profit to include the divestment gain, but cut FY19F-20F earnings – driven by lower-than-expected sales.
♦ Prefer Indofood CBP and Mayora.
Link to report: https://research.rhbtradesmart.com/attachments/72/rhb-report-ind_unilever-indonesia_results-review_20181030_rhb-746273618820424275bd78fdb67756.pdf
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