Jul 8, 2010

Bukit Asam 1H coal sales up 10%-11%

One of Indonesia's coal mining company PT Tambang Batubara Bukit Asam Tbk (PTBA) estimates a 10%-11% increase of coal sales volume during the first half this year (1H), while production volume is set to rise 15%-20%/
Bukit Asam has sold 5.8 million tons of coal and posted Rp4.5 trillion of sales during the first half this year.   "Sales volume has been increased 10%-15% as production has risen 15%-20% compared to a year before," said Bukit Asam President Director Sukrisno today.
According to him, Bukit Asam sets a sales target of more than 13 million tons of coal this year, while production will be boosted to 12.5 million tons-13 million tons.
Bukit Asam will see 2010 much better with demand for coal boosted by a strong domestic economy and a recovering global economy. 
In a research report published by PT Danareksa Sekuritas, the recovery is already in place as indicated by the 30% quarter on quarter surge in sales volume to 3.8 Mt in 4Q09 and the big jump in trading volume. 
"We are increasingly confident that our 2010 coal sales volume estimate of 14.3 Mt can be attained by the company. Given the current rosy outlook, the shares look attractive at P/E 10F/11F of 16.3x/ 12.6x. Buy call maintained," Danareksa's analyst Metty Fauziah said in her report.

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