Fauzan DJAMAL, Andrey WIJAYA - RHB Sekuritas
Link to latest update report: https://tinyurl.com/3t4xfw6w
♦️ Maintain TRADING BUY and TP of IDR5,050, 24% upside with c.11% FY22F yield. The assurance of strong net profit growth from last year’s high base (FY22F: +30% YoY) partially justifies its valuation, for now.
♦️The surge in coal prices buoyed Bukit Asam’s 1Q22 overall earnings, while helping to mitigate the effect of its relatively weak output during the quarter (due to seasonal factors as a result of prolonged rainy weather).
♦️That said, management will stay vigilant on meeting its production targets for the quarters ahead. Its balance sheet remains healthy, thanks to its ample cash pile – which should help fund its future expansion, while keeping dividend yields attractive
Thank you.