Post-China Minzhong divestment, Indofood’s balance sheet became healthier with lower debt. Net gearing declined to 0.2x as at end-Dec 2016 (from 0.5x end-Sep 2016). Our ground checks suggest Indofood’s flour and CBP retail selling prices increased in Dec 2016 and January. These higher ASPs are likely the result of the pass on costs from the increase costs especially cost of goods sold (COGS) in 4Q16. We maintain our BUY recommendation with a DCF-based IDR10,300 TP (28% upside), implying 19x and 16x FY17F-18F P/Es respectively.