Analisis Saham SMGR | 3 Desember 2018

ID - [ SMGR]: NDR: +ve Feedback; Long-Term Synergies From Deal
Andrey Wijaya, Mutiara Nita - RHB Sekuritas

Link to report: https://research.rhbtradesmart.com/attachments/87/rhb-report-ind_semen-indonesia_company-update_20181203_rhb-569251815422623375c0458a94d2c9.pdf

♦ Maintain BUY on Semen Indonesia with higher DCF-based TP of IDR14,500 (from IDR11,500 and now at high end of consensus) offering 21% upside, implies 29x-25x FY19F-20F P/Es.

♦ Feedback at our recent NDR in KL positive.

♦ Bloomberg reported the company will finance the Holcim Indonesia acquisition via USD1.28bn in debt.

♦ We see the acquisition creating positive synergies such as lower distribution costs.

♦ In our scenario analysis, earnings are set to improve in 2020.

♦ Main risk is intense competition in the cement industry.