Dec 2, 2010

Lautan Luas FY10 net profit stays flat

PT Lautan Luas Tbk (LTLS) conducted an analyst meeting yesterday. Based on the management of Lautan Luas. the company targets FY 2010 revenue to rise by 2% to Rp3.8 trillion YoY, while net profit to stay flat at Rp85 billion.
In a morning note issued by Kim Eng Securities today, Lautan Luas’s current projects are: capacity expansion phase 2 in storage tanks to 79,000KL from 25,000KL (completion is expected in 1Q 2011, or delayed from previous target in 4Q 2010), a new plant of edible
ethanol with capacity 50,000 KL, join Indonesia Ethanol Industry (affiliated company) in Lampung, (completion is expected in 1Q 2011, delayed from previous target in Q4 2010, an aluminum sulfate expansion
plant by 25,000Mt to 50,000Mt (construction progress 94%, completion is expected in 1Q 2011), and Manufacturing of non‐dairy creamer product in Mojokerto, with capacity, 21,600MT/year, (completion is expected in 1Q 2012). 
Based on FY 2010 management’s net profit target, the company is traded at 7.4x PER.
Lautan Luas’s 9M 2010 net profit came in lower by ‐13% y/y to Rp53 billion, mainly because operating expenses were up by 10% to Rp320 billion, while revenue only increased by 4% y/y to Rp2.75 trillion.
According to management, rupiah appreciation by 15% caused revenue in rupiah term only increased 4% y/y as 70% the company’s sales are in US$ based. Sales in US$ term increased more than 20%, supported by
higher volume.

Disclosure: No position at the stock mentioned above.  

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