Indocement Ranked Outperform

VIVAnews - PT CIMB-GK Securities Indonesia maintains the rank of PT Indocement Tunggal Prakarsa Tbk (INTP) on outperform level. CIMB-GK Securities pushes up the projection over the earning per share in 2009 by 14 percent with a targeted price of Rp 7,000 from the previous Rp 6,500.

The research showed that INTP still gains interest due to a thesis of recovery demand. In addition, deleveraging will add value to the company in the future.

In the first quarter of 2009, Indocement recorded net cash Rp 298 billion, taking into account its short term working capital loan.

"Dividend payout may increase because no capital expenditure is recorded," Director of CIMB-GK Securities Indonesia, William Henley, said on Monday, May 4.

He also said that in the first quarter of 2009, the company's margin rose by 40 percent, compared to the previous 34 percent booked in the first quarter of 2008. 

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Translated by: Bonardo Maulana Wahono