Semen Indonesia’s lower market shares in November
Semen Indonesia ($SMGR) November domestic cement sales fell to 2.3m tonnes (-9.5% MoM), steeper than domestic cement sales which declined to 5.7m tonnes (-5.4% MoM). In our calculation, Semen Indonesia market shares declined to 40.2% in November (October: 42%). In November, Semen Indonesia maintain its domestic selling price at IDR766,000/tonne (-0.3% MoM).
On cummulative basis, Semen Indonesia has lowered its average selling price to IDR803,000/tonne (-6.9% YoY), however it is not enough to boost its sales volume amid current weak domestic cement demand.
We maintain Neutral with DCF-based TP to IDR9,800 (5% upside), implying 12x FY17F P/E. (Andrey Wijaya)