SRIL'S 1H14 EARNINGS HIT BY FOREX LOSS

PT Sri Rejeki Isman (SRIL) has released its 1H14 result with revenue growing by 55.9% yoy to
Rp3.26 tn while net profit dropped by 24.1% yoy to only Rp139 bn. The dropped on net profit was
partly due to the huge increase of forex loss from Rp9.9 bn in 1H13 to only Rp68.9 bn in 1H14.
Excluding this, the company's core-profit is growing by 7.7% yoy from Rp193 bn to Rp208 bn in
1H14. The company also burdened by the rising interest expenses which surged by 85.6% yoy to
Rp171.8 bn arising from the company's US$200 mn bond issuance. SRIL's 1H14 result is relatively
in-line within consensus' expectation with revenue came at 47% estimate while core profit at 50.1%
of consensus' number. SRIL is currently trading at 2015F PE of 5.8x.

(in Rp bn)            1H14      1H13       YoY       1H/'14F* Net Sales            3,264      2,094     55.9%    47.0% Gross Profit         589         435        35.2% Operating Profit    380         338        12.6% Net Profit            139         183        -24.1% Core Net-Profit     208         193        7.7%      50.1% Gross Margin        18.0%     20.8%    -2.8% Operating Margin  11.7%     16.1%     -4.5% Net Margin           4.2%      8.7%      -4.5%