IND: Harum Energy: Soft 2Q18 Earnings, Better 2H Outlook
Analyst: Hariyanto Wijaya, CFA, CPA, CMT
Link to report: https://research.rhbtradesmart.com/attachments/98/rhb-report-ind_harum-energy_company-update_20180802_rhb-150482417819941985b62325f59800.pdf
▪Harum Energy booked weak 2Q18 earnings of USD4.6m (-54% YoY, -64% QoQ) from weaker-than-expected 2Q18 coal production of 0.8m tonnes (-27% YoY, +5%QoQ). This is as it faced a combination of bad weather, contractors’ equipment availability issues, and land access delays.
▪Its coal production is estimated to recover in coming quarters on dry weather in 2H18 and additional coal trucking capacity.
▪Cut FY18F earnings by 14.3%, while maintaining FY19F-20F. Reiterate BUY with DCF-derived IDR3,400 TP, 15% upside.
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