Nippon Indosari: Company Update - A Good Start to FY12
ROTI indicated that 1QFY12 sales grew 60% y-o-y to IDR274bn, bolstered by higher sales volume. We expect sales to further strengthen, driven by higher production capacity and average sales price (ASP) for FY12 which are expected to increase by 40% and 10% respectively. In addition, its sales network has increased to 32k sales points in Feb 2012 from 26k points in 3Q11 (+24.6%), allowing ROTI to penetrate new markets. ROTI also introduced new designs to boost its brands. Notably, according to the Top Brand Index, ROTI is Indonesia’s most popular bread brand. We reiterate BUY with a TP of IDR4,350
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