Integrated energy company PT Indika Energy Tbk (INDY) is estimated to obtain approximately 16% additional earning from PT Mitra Bahtera SegaraSejati (MBSS), Indonesia's second largest coal transport and logistic company).
A source said MBSS booked 2009 revenue of Rp700 billion followed by lucrative profitability with EBITDA of Rp369 billion (52.7% margin) and net profit of Rp250 billion (35.7% margin).
In a morning note issued by Mandiri Sekuritas today, latest tugs and barges company acquisition done at 7.5x EV/EBITDA.
"However we view it too expensive. So we prefer more conservative at 6x EV/EBITDA for MBSS. Assuming 15%-20% EBITDA growth in 2011 will potentially translate additional Rp 200 – 210 per share to its SOTP valuation or 5% - 5.2% from INDY’s last closing price. Currently we have buy rating on the stock which is traded at PER10F-11F of 19.3x – 12.2x," the note said.
Indika will conduct a customary due diligence. Indika will have option to acquire 51% holding in MBSS.
MBSS is currently conduct business in one stop fully integrated solutions to the logistical needs of the Indonesia coal industries ranging from shore based barge loading facility to the offshore loading of ocean going to vessels.
MBSS’s top customers are Adaro, Kaltim Prima Coal, Kideco Jaya Agung, Bukit Asam, Arutmin, Berau Coal and Indominco Mandiri. MBSS has tranported more than 25 million tons of coal in 2009
Beside diversifying the company’s revenue stream, the corporate action is in line with the company growth strategy by further fortifying its integrated energy platform
MBSS will benefit greater market share from energy and mineral resources regulation no 17/2010 relates to the apparent extension of the cabotage principle which now include coal exported to ports outside of Indonesia.
Disclosure: No position at the stock mentioned above.
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