REMINDER !
RHB (DR)
*IND: Bukit Asam (PTBA IJ, BUY, TP:IDR3,900): Dividend Yield Of 9.3% Surprises On The Upside*
On 11 Apr 2018, Bukit Asam declared a dividend/share of IDR318.52. This generates a sizable dividend yield of 9.3% with a cum date of 18 Apr. The dividend yield is higher than our and consensus expectations (street estimates for FY18F dividend yield is at 3.6%).
The AGM also saw a change in a top management, ie Mr Mega as the newly appointed Finance director, taking over from Mr Orias. Considering the track record of Mr Mega, we think he is well qualified.
We reiterate our BUY call with a TP of IDR3,900 (14% upside). We think FY18 should present a potential earnings surprise, as Bukit Asam should book an earnings growth during this financial year. Our FY18 earnings forecast is 23% higher than consensus.
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