Adaro Energy (ADRO) - Production Meet Target

Adaro Energy ADRO – Maintain BUY
Price: Rp2,350 – Target Price: Rp2,800

Production meet target

  • Net earnings jumped 104% YoY to US$268 mn, EBITDA rose 37% YoY to US$626 mn
  • Higher sales volume (+10.4%) and ASP (+23%)
  • Production volume meet target, achieved 48.5% of our FY11 target.
  • Despite excellent 1H11, share price is under selling pressure due to US$153mn customer claim which potentially impact earnings in 3Q11
  • Share weakness provide buying opportunity, BUY with price target Rp2,800/share