Mitra Adiperkasa FY12 in-line with our and consensus

Mitra Adiperkasa: FY12 in-line with our and consensus (MAPI, Rp8,250, Neutral, TP: Rp6.300)

FY12 NPAT of Rp433bn (+20.1%yoy) came in-line with our (100%) and consensus (97%) estimates. Net, gross, operating, and pretax profit were also within our and consensus’ estimates. Stripping-out FX gains/loss effect, core net profit came at Rp466bn (+21.7%yoy), accounting for 99% of our estimates.

FY12 NPAT showed a 20.1%yoy growth, as net sales rose 28.8%yoy. Bottom-line growth was milder as gross margin edged up lower to 50.9% (versus 51.7% in FY11). Operating costs increase (+28.0%yoy) was manageable as compared to the net sales growth (+28.8%yoy).

4Q12 NPAT of Rp150bn showed a 12.6%yoy and 29.2%qoq growth. The strong QoQ increase translated down from the 8.2%qoq increase in sales, which is normal as 4Q has always been the best quarter for MAPI amidst year-end holidays. On YoY basis, 4Q12 NPAT growth was also strong at 12.6%yoy, but was much milder than the 27.8%yoy net sales growth as effective tax rate in 4Q11 was low at 22.4% versus 26.4% in FY12.

MAPI opened 339 new stores in FY12 (versus 190 stores in FY11), adding a total selling space of 105,113 sqm or 23% of its existing space. This achievement is 40% higher than our 75,000 sqm assumption, due to loads of new space supplies in 4Q12 (i.e. Kota Kasablanka). FY12 SSSG came as expected at 14%, broken down as follow: 13% for department stores, 17% for specialty stores, and 9% for F&B.

This year, MAPI guided for a 25% top-line growth target with 100k sqm new selling space and 8-10% SSSG, still in-line with our current assumptions of 22% sales growth, 70k sqm new selling space, and 11.5% SSSG. Challenges are on margin maintenance (i.e. labor, electricity, and rental costs) and competition.

We will review our financial model to incorporate FY12 results, pending the release of full-notes financial statement. We currently have a Neutral call with Rp6,300/share target price. MAPI currently trades at 24.3x FY13F PE.