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Targeting 49% upside. BUY
6th April 2018
Price Rp 1035
Target price Rp1,540
6th April 2018
Price Rp 1035
Target price Rp1,540
Results match target
DMO price cap
$1bn More Contract
Valuation: 49% upside. Reiterate BUY
- Revenue up 25% year-on-year to US$. 765 million, inline with our target
- Net Income increased 26% year-on-year to US$47million, also inline with our target.
- In 2018, we maintain our target.
DMO price cap
- The DMO selling price is set for domestic power plants at US$. 70 or HBA whichever is lower.
- The DMO applies to only 20-25% of BUMA’s customers production and it will not impact to BUMA while global coal price continue to sustain at current levels.
$1bn More Contract
- BUMA’s total order book US$ 6.0 billion, up from US$ 5 billion at the beginning of 2018
Valuation: 49% upside. Reiterate BUY
- Based on our optimistic coal price outlook for this year and despite lower volume during January 2018, we maintain our targets for 2018F giving us a higher target price of IDR. 1540/share which represents 14.4 PER and offers 49% upside potential. We reiterate BUY.
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