Indonesia's Mitra Adiperkasa eyes growing consumer spend

* Sees FY net profit up 5-6 pct, vs analysts forecast 8-9 pct

* Sees FY revenue up 15-20 percent

PT Mitra Adiperkasa (MAPI), Indonesia's largest upmarket retailer, said on Monday it expects net profit growth of 5-6 percent on revenue growth of 15-20 percent this year, lifted by rising middle-class spending.

Mitra, which has a stock market value of $205 million, is seen by investors as a play on rising disposable incomes in Indonesia. It puts the size of the middle class at about 30 million, out of a total population of about 237 million.

The firm, which is linked to the Nursalim family, has the exclusive rights to sell several leading international brands in Indonesia, including Spain's Zara fashion house and US-based Starbucks Corp coffee store (SBUX.O).

It also operates Indonesia's largest chain of sportswear stores, selling products from Nike Inc (NKE.N) and Adidas (ADSG.DE).

Fetty Kwartati, Mitra's corporate secretary, told Reuters the firm expects net profit to rise 5 or 6 percent this year from 164 billion rupiah ($18.28 million) in 2009. Analysts forecast net profit to rise 8.8 percent to 178.5 billion rupiah, according to Thomson Reuters I/B/E/S.

Mitra reported a 13 percent drop in first-half net profit to 100 billion rupiah on lower foreign exchange gains. Kwartati said revenue is expected to rise 15 to 20 percent this year from 4.1 trillion rupiah in 2009.

Mitra, which has 92 international brand rights, competes at the mid-to-upper end of the retail market against privately owned Para Group, controlled by Indonesian businessman Chairul Tanjung.

Other retailers including PT Matahari Putra Prima (MPPA) and PT Ramayana Lestari Sentosa (RALS) are more focused on the mid-to-lower end of the spectrum.

Mitra's share price has risen about 79 percent so far this year, outperforming Matahari, up 5 percent, and Ramayana, up 40 percent, while the broader market has risen 23 percent to hit a new record.

Kwartati said Mitra's typical customers for its sportswear outlets have monthly salaries of 1.5 million rupiah to above 3 million rupiah.

Well-heeled Indonesians typically fly to Singapore to shop for the hottest brands, but that trend is changing, Kwartati said, because Jakarta can offer more choice now. "We have almost all the international brands in Indonesia and in terms of pricing, some of it is cheaper here," she said.

"Customers who usually go abroad, for example to Singapore, to buy some clothes and other things now choose to buy it in Indonesia." ($1=8970 Rupiah). Source: Reuters