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| The Jakarta Post (20/07) |
By Harry SU - Head of Research Bahana Securities
With second quarter 2012 (2Q12) result season upon us, we provide investors with a preview of market performance and reviews of sectors and stocks under our coverage (75 companies, equivalent to 80 percent of total market cap of the index).
For the market as a whole, we expect 2Q12 year-on-year (y-y) operating profit growth to decelerate from 20.1% in 2Q11 to 15.0% (exhibit 1), but up when compared to 1Q12 level of 10.0% y-y growth.
On the bottom line, market growth also decelerated from 26.5% y-y in 2Q11 to 15.5%, but higher than 1Q12 level of 15.6%. In terms of aggregate 1H12 figures, the market’s operating profit growth reached 12.5% y-y (1H11: 23.7%) with net profit growth of 12.4% (1H11: 29.5%).
We expect 6 sectors (exhibit 2), “the good”, to register higher growth than the overall market performance. The oil & gas sector continues to be skewed towards PGAS’ performance, which we expect to book strong operating and net profit growth due to delay in upstream price increases coupled with low base in 2011.
