Lower Than Expected Bottom Line
INTP recorded a 1Q18 net income of IDR 264 bn (-46.2% YoY; -41.8% QoQ) corresponding to mere 12.7% of our FY18 forecast and consensus’. However, 1Q18 revenue was reported to be in line (22.8% of our estimate, 23.5% of consensus) and reached IDR 3.4 tn (+1.9% YoY, -12.2% QoQ). Cement sales was flat (-0.01% YoY) despite a robust 9.5% YoY rise in sales volume during 1Q18 implying a decline of 8.7% in cement ASP or 7% of the blended ASP. Meanwhile, ready-mix concrete revenue picked up by 16.1% YoY to sustain the overall revenue.