Gudang Garam Stock Hits Record High on Profit Hopes
Shares of PT Gudang Garam, Indonesia’s second-biggest cigarette maker, rose to the highest level since they started trading in Jakarta almost 19 years ago on speculation of strong 2009 profits.
Gudang Garam climbed 4.7 percent to Rp 25,750, the highest since it started trading in August 1991.
Gudang Garam, which means “salt warehouse” in Indonesian, said on Oct. 30 that nine-month-profit jumped to Rp 2.48 trillion ($266 million) from Rp 1.5 trillion a year earlier, helped by lower prices for materials, including cloves.
“It has been getting better as time went by in 2009 along with more integration of its distribution arms,” said Yohan Setio, an analyst at PT Mandiri Sekuritas, who rates the stock a “buy.” Setio said the earnings may not reach twice the Rp 1.9 trillion net income reported in 2008.
Bloomberg
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