Latest Report Released: August 24th, 2018
Current Rating: Buy; Previous Rating: Buy;
Current Target Price: 11,300; Previous Target Price: 11,300
Maintained Rating, Maintained Price Target

• In 2Q18, revenues reached IDR 6.7 bn (5.9% YoY, 1.1% QoQ), unperturbed by fewer working days due to Eid holiday in June and lower sales volume (-1.5% QoQ)
• 1H18 revenues amounted to IDR 13.3 tn (+4.7% YoY) achieving 45% of consensus and our forecast.
• Sales from Indonesian facilities in 1H18 reached 13.3 mn tonnes (+3% YoY), export was 1.5 mn tonnes (+53.5% YoY), whereas domestic sales was 11.8 mn tonnes (-1.2% YoY).

We maintained our BUY recommendation on SMGR, with unchanged target price of IDR 11,300 following inline results, which implies 32.7x FY18F P/E ratio and 13.6 FY18F EV/EBITDA.  Downside risks to our call include higher than predicted energy prices, lower sales volume and ASP.

PT Phillip Securities Indonesia
ANZ Tower Level 23B, JlJendSudirman
Kav. 33A Jakarta 10220 – Indonesia
Tel +62-21 5790 0800 Fax +62-21 5790 0809
Website: www.phillip.co.id