Search result for: "PTBA"

PTBA exposure in the domestic market provides a stable cushion during difficult export market condition, therefore able to generate more stable profitability compared to its more export oriented peers. Recently announced 1H12 performance reveals that ASP remains stable despite weaker global price benchmark. We pick PTBA as one of our top picks in the sector.

PTBA 1Q12 earnings were up by 15% q-o-q and 14% y-o-y, in line with both our estimates and consensus. For the quarter, sales volume registered a 7% q-o-q jump to 3.9m tonnes and coal production volume stood at 3.4m tonnes. Blended ASP was relatively flat on a q-o-q basis but was 4% higher on a.

PTBA reported its FY11 profit of IDR3trn, a 54% y-o-y increase but fell short of our estimates and consensus. Lower than expected sales volume and significant jump in production cost were the key reason. We lowered our production forecast for 2012 and 2013 by 10% and 9% each respectively thus revising down our target price.

Reinstate coverage with Neutral call, TP: IDR21,150 , potential upside: -6.2%. We reinstate coverage on PTBA with a neutral call, with our TP implying a 17.1x-12.5x FY11-12f earnings. PTBA’s value hinges on its ability to execute its long-term projects that will rapidly increase the utilization of its vast coal reserves. But until more certainty emerges.

Overweight on the sector We initiate coverage on the coal sector with a positive view reinforced by the strong earnings growth momentum, exciting demand-supply dynamics and Indonesia’s strategic position in the global seaborne coal market. The coal companies under our coverage are projected to deliver earnings growth of 67% – 46% in the 2011-2012 period,.