Astra Agro Lestari: Hold; Rp22,000

Astra Agro Lestari: Hold; Rp22,000;
Price Target: Rp21,300; AALI IJ
2011 CPO output in line with forecast

Astra Agro Lestari (AALI IJ) reported that it produced 110,674 MT of CPO in Dec11, c.3% stronger MoM, translating to FY11 CPO output of c.1.27m MT (+14% YoY) – in line with our forecast of 1.24m MT. AALI processed 5.6m MT of FFB during the year - also within expectations. Of the processed amount, 62% came from AALI’s nucleus estates, while 22% and 16% were purchased from plasma and third-party estates, respectively. The group’s Sumatra estates yielded 45% of own FFB output during the year, while its Kalimantan and Sulawesi estates contributed 36% and c.19%, respectively. This year we expect AALI's CPO output to grow by c.2% YoY to 1.3m MT.

(Source : Listri Adistri)