INTP IJ – FY19 Final dividend payment at c.4.0% yield
Andrey WIJAYA, Fauzan DJAMAL, Ryan SANTOSO - RHB Sekuritas
Indocement declared to distribute its FY19’s final dividend at IDR500/share (FY18: IDR550/share, -9.4% YoY), equal to *payout ratio at c.100% of INTP’s FY19 net profit (FY18: 101%) – above our estimate* at IDR450/share.
Based on INTP’s last close price (per 28 July 2020: IDR12,350), the final dividend will translate to c.4.0% yield, compared to FY18’s dividend yield at c2.8%.
Still Buy with IDR15,500 TP (26% upside) – 3-years P/E still below -1SD. Downside risks to our call include a further slower growth in cement demand due to COVID-19
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