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BUMI
Contact our analyst Revita

89% upside. BUY

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Targeting 9% production growth a year
  • As of 1Q18, BUMI posted significant revenue growth of 2914% to USD. 310.5 mn in 1Q18
  • Bottom line grew by 2.4% yoy to USD. 90,16 mn in 1Q18 based on accounting for joint venture agreements.
  • In full consolidation, BUMI’s revenue grew 11%yoy while the bottom line grew18% yoy.
  • We estimate CAGR revenue growth of BUMI during 2018-2019 will be 10% yoy fully consolidated with combined production estimated to average CAGR growth of 9% to reach 90.4mn tons and 99.4 mn tons in 2018F and 2019F compared to 2% CAGR growth in 2015-2017A

Increase in Equity
  • Since BUMI’s debt restructuring process started last year, BUMI has reduced its debt from USD 4.4bn in 2016FY to USD. 1.6bn in 2017FY.
  • BUMI’s equity started to improve with total capacity deficiency attributable to owners decreasing from 2016A to 2017A.
  • We are targeting DER to reduce to average 1.35x within 2018-2019 with debt payments of USD 200-400mn USD per annum.

Valuation: significant upside
  • We are targeting TP within one year of IDR. 495 which would equal 5x PER compared to currently 2x PER which is still undervalued.
Download full report here
PT. Binaartha Sekuritas
Setiabudi Atrium, Jl. HR Rasuna Said No.62, RT.18/RW.2, Karet Kuningan, Setia Budi, Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12920
​+62215206678
email: kyc.online@binaartha.com
https://goo.gl/maps/PKLpSBLFdzp


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