INTP

Contact our analyst Eka

Market share recovers in 1Q, but after big drop in 2017, we still recommend sell.
11th April 2018
Price Rp19,850
Target price Rp18,650

2017FY drop

• 2017FY INTP booked revenue of IDR 14.43 trillion a decrease of -6.1% yoy
• Operating profit fell -48.6% yoy to IDR 1.87 trillion​
• Operating margin dropped to 13% from 23% the previous year
• Net profit fell -51.9% to IDR 1.86 trillion

But sales grew in 1Q2018

• INTP sales volume grew in the first quarter of 2018 by +9.8% to 4.1 million tons
• Market share in Indonesia jumped from 25.8% in March 2017 to 26.7% in March 2018
• The improvement in market share came from Jakarta, Banten, Central Java, West Java

Valuation: Maintain SELL with Increasing TP 18,620

• Using DCF with WACC at 12.01%, we are targeting INTP to trade at 33x 2018F PE within a year.
• Target Price is IDR 18,620 which represents -6.2% downside. SELL

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Previously

February 2018