FR CGS-CIMB (YU) : Bukit Asam
2Q18: Better-than-expected performance; but reflected in valuation
PTBA IJ / PTBA.JK | HOLD - Maintained | Rp4,260.00 tp:Rp4,300.00
Mkt.Cap:US$3,386.00m | Avg.Daily Vol:US$7.58m | Free Float:35.00%
Coal Mining
Author(s):Felica TRENSENO +62 (21) 3006 1722,
1H18 net profit of Rp2.58tr (+49% yoy) was in line with expectations at 53% of both our and consensus FY18 forecasts, supported by in-line operational performance.
This was despite the domestic market obligation (DMO) price cap being fully implemented in 2Q, leading to lower 2Q18 ASP (-12.5% qoq).
The 1H18 margin improvement was broadly in line with our expectation. We keep our forecasts unchanged.
Maintain Hold. Announcement of a favourable pricing for DMO transfer quota scheme, expected in 4Q18F, is a key upside risk.
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