ABM Investama Analyst Meeting Result (April 2013)
Several expansions and new contracts secured made by ABM Investama, Tbk (ABMM IJ) back in 2012, however the net earnings figure for FY12 is way below what we expected. This is mainly caused by the unexciting coal mining outlook which has dragged down margins for its mining contracting and coal mining business, putting severe pressure to the earnings consolidation of ABMM’s 5 strategic business units in FY12.
Six SOEs on Positive Outlook at Fitch; 1 Rating Upgrade at Pefindo
Eximbank on Positive Outlook; PPRO Outlook Revised to Negative
Nusa Konstruksi Enjiniring and Macmahon Builds Mine Project
Four Government mission to Indonesia at a meeting of the IMF-World Bank
Infrastructure Bonds for SOEs Now Included in SBN
Nevertheless, ABMM’s power solution business, SS, is ABMM’s cushion against the coal downturn. Note that SS power capacity has reached 1,010MW (higher compared to 942.8 in Jan’ 12), translating to 1/7 of Jakarta’s (Indonesia’s capital city) power capacity. SS will expand to IPP to maintain sustainable revenue stream in 10 years ahead. 2013 capex figure was not mentioned however the allocation would be mostly for its MDB coal mine project in Aceh and increasing SS production capacity to 1,250MW.
Medco Acquires Saratoga Power Worth USD129.21Mn
HD Capital Postponed Panca Sinergi Acquisition
Aneka Gas Industri to Prepare IDR250Bn Capital Expenditure
Renewable Energy Investment Reached IDR11.74Trn in 10M17
Infrastructure Projects Boost Bulk Cement Sales Growth
In 2013, ABMM will focus on improving cost efficiencies especially on opex to maintain a healthy balance sheet. Coal production progress: TIA is producing at maximum capacity of 5m tonnes annually till life of mine. MDB is expect to be completed in Oct’13 MDB with production target of 7m and 10m tonnes in 2014-15. Total coal business unit is expected to produce 12m tonnes and 15m tonnes in 2014-15. 2013 earnings is uncertain at this current stage as it will heavily rely on higher coal price. Historical 2012 PER is at ~70x PER.
