Kamis, 14 Juli 2011
Tambang Batubara Bukit Asam: Buy; Rp21,150; TP Rp25,750; PTBA IJ Preliminary 1H11 guidance - DBS
It was reported that PT Tambang Batubara Bukit Asam Tbk (PTBA) sales volume grew 44% to 6.5m tons in 1H11 and is targeting sales volume of 16.7m tons for FY11. The sales volume target is in line with our expectations as 2H11 is typically stronger than the 1H11. The company also guided that 1H11 earnings will grow by 65% y-o-y to Rp1.5tr on the back of volume growth as well as higher average selling prices. Given the strong 1H11 performance, PTBA’s President Director, Sukrisno is optimistic of achieving the company’s FY11F target. In the near term, PTBA is expected to improve its capacity via de-bottlenecking of railway capacity with additional locomotives and carriages. Maintain Buy and TP of Rp25,750 based on blended valuation of 15x FY12F PE and 5x P/BV.
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