Aug 24, 2010

Astra Agro FY10 revenue flat at Rp7.42t

Corporate Secretary PT Astra Agro Lestari Tbk (AALI) Santosa expects FY10 revenue to come in flat at Rp7.42 trillion, due to stronger rupiah. 
The company also expects to sell 1 million tons of CPO in FY10, 5.6% lower compared to last year of
1.06 million tons.
In an equity daily published by Kim Eng Securities, the brokerage concurs with management’s view on flat revenue and lower CPO sales volume of 1 million tons. 
The company posted flat revenue in 1H10 at Rp3.51 trillion. Net profit, however, fell by 17% y/y on higher unit cost.
Sales volume in 8M 10 decreased by 2% y/y to 573.6k tons of CPO, led by 8.8% drop in FFB harvest at 2.2 million tons. CPO Production in 8M10 fell by 6.5% to 568.3k tons.
"We estimate CPO production in 2H10 to come in weak, as the South East Asia region is expected to experience La Nina, which typically would cause wet period in the area," Kim Eng said.
On the other hand, we expect CPO price to remain strong above US$800 per ton in 2H10, on concern over edible oil supply and heavy drought in Russia.

Disclosure: No position at the stock mentioned above.

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