Aneka Tambang (ANTM) - 1Q11 Result Below Estimate

Aneka Tambang (ANTM) – Maintain Hold
Price: Rp2,250 – Target Price: Rp2,100

1Q11 Result Below Estimate

  • ANTM’s 1Q11 earnings and revenue grew by 20% and 72% YoY respectively.
  • 1Q11 Revenue and net income came below our estimate.
  • If ANTM’s cargo to Europe was not hijacked, 1Q11 performance might be in-line with expectations.
  • Strong nickel performance while gold underperformed.
  • We revise our net income forecast by -0.7% and 3.7% in FY11 and FY12 after factoring the estimated lower gold production from Cibaliung in FY11 and expected higher ASP and volume in FY12.
  • Our new target price of Rp2,100 (previously Rp2,325) implied 11.3x–10.4x PE’11F–12F and current price has implied fair value of the stock. Maintain Hold.