DB - SMGR IJ: THE CONSOLIDATOR, TP UPGRADE TO RP 18,000
SMGR + SMCB = TP upgrade to Rp18k
DB cement analyst, Joko Sogie, expects ST earnings hiccup during transition year 2019 but expect >50% NP growth in 2020, while EBITDA to nearly double from current level by 2020. At new TP Rp18k, mean revert EV/EBITDA 14/11x 2019/20E; we factor in 4 major things:
1) Muted supply increase
2) Continued mild Vol+ASP increase
3) Costs tailwind from Coal & IDR
4) Structural costs efficiency from internal and SMCB inclusion
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