RHB( DR)
PTBA Upgrade to BUY TP 6000 (fr HOLD 4000)
Bukit Asam (PTBA IJ): Upgrade to BUY at Street High IDR6,000 TP: Index Inclusion + Good 3Q18 Results
(Henry Wibowo - RHB Sekuritas)
Report Link:
https://research.rhbtradesmart.com/attachments/0/rhb-report-ind_bukit-asam_results-review_20181115_rhb-351325719449248725becc7ae37c4b.pdf
Summary:
Upgrade to BUY from Neutral, new street-high TP of IDR6,000 from IDR4,000, 26% upside (including c.3% FY19F yield). Our upgrade is largely due to PTBA’s solid 3Q18 numbers (EPS: +6% QoQ, +31% YoY) as well as MSCI Indonesia’s recent announcement that PTBA will be included in the index effective from 30 Nov 2018 (strong expected incoming fund flows in near-medium term). We raise 2018/2019F EPS by 13%/20% on its higher ASP (DMO price cap concern overdone), volume and cost management. PTBA now trades at an undemanding 10x FY19F P/E, with 28% ROE.
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