AALI reported 1H20 net profit of IDR391 billion or jumped 769% YoY, contributing to 72% of our 2020F target. ASP increase of 25.9%, lower tax rate, and cost efficiency were the main factors of solid performance despite the drop of FFB production by around 8.1% YoY. Maintain our 2020F estimates by factoring in recovery of demand and earnings growth. We continue a BUY recommendation for AALI.
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