Andrey WIJAYA, Fauzan DJAMAL, Ryan SANTOSO - RHB Sekuritas
Indo Tambangraya Megah declared to distribute its FY19’s final dividend at IDR570 per share, bringing its FY19 DPS at IDR1,275 with payout ratio at c.75% (FY18: 101%) - lower than 10-years average at 92%.
The final dividend cum date is 5 June with payment date on 23 June.
Based on ITMG’s today close price (per 27 May 2020: IDR8,200), the final dividend will translate to c.7.0% yield. Combined with the interim dividend (IDR705 per share; 5.6% yield) that was distributed in Nov-19, ITMG’s FY19 total dividend yield at c.12.5% (FY18: 15.5%) – higher than 10-years average at 9.4%.
ITMG recorded 1Q20 revenue of USD366m (-11% QoQ, -19% YoY), with USD15m of net earnings (-45% QoQ, -61% YoY).
Reiterate Trading Buy with IDR9,100 TP (11% upside) – 10-years P/E still below -1SD. Downside risks to our call include a further weakening in ASP.
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