ADRO IJ – Final dividend payment revised to c.4% yield (FY19 total yield: 8.3%)
Andrey WIJAYA, Fauzan DJAMAL, Ryan SANTOSO - RHB Sekuritas
♦️ The final dividend amount was cut from c.IDR110 per share previously planned in May (-60% revision; c.9.5% potential yield). Cum date is 3 June with payment date on 19 June.
♦️ Based on ADRO’s last close price (per 3 June 2020: IDR1,165), the final dividend will translate to c.3.8% yield. Combined with the interim dividend (IDR65 per share; 4.5% yield) that was distributed in Jan-20, ADRO’s FY19 total dividend yield at c.8.3% (FY18: 7.2%) – higher than 10-years average at 4.4%.
♦️ ADRO booked 1Q20 revenue of USD750m (-7% QoQ, -11% YoY), with USD98m of net earnings (-17% YoY) – results were above ours and Street’s estimates (30%/29%).
♦️ Reiterate Trading Buy with IDR1,360 TP (17% upside) – 10-years P/E at -1SD. Downside risks to our call include a further weakening in ASP.
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