TB Bukit Asam (PTBA) - Maintain BUY
Price: Rp19,350 – Target Price: Rp22,500
Higher Rail Transport in 3Q10
- Revenue up by 4.7% qoq but net profit dropped 9.9% qoq in 3Q10.
- PTBA managed to achieve higher rail transport, up by 2% to 8.05 mn ton or 10.7 mn ton annualized.
- We expect better performance in 4Q10 on the back of higher ASP and strong railway achievement.
- Coal capacity will grow by 27.1% CAGR (2010-2015) drives by dual railway project from BATR and Adani.
- The stock is currently trades at 13.5 PER’11 with lowest EV/reserve of US$2.2/ton.
- We roll over to end-FY11, WACC 16% with higher price target of Rp22,500/share, reflects 15.7x PER’11.