Dec 22, 2010

Delta Dunia 11M overburden rises 3.7%

Coal mining contractor PT Delta dunia Makmur Tbk (DOID) reported flat coal production in November 2010 of 3.2 million tons and slightly lower overburden of 26.8 million bank cubic meter (-1.8% month on month).
In a morning note distributed by PT Mandiri Sekuritas today, Delta Dunia's 11M 2010 coal production and overburden achieved 31.9 million tons (+6.7% yoy) and 264.8 million bcm (+3.7% yoy) which inline representing 93% and 91% from revised FY10 target respectively
"Currently we do not have rating on the stock. Delta Dunia is traded at 15.0x – 11.5x PER10F-11F based on Bloomberg consensus," said the note.
Delta Dunia, parent of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), showed a better performance in the third quarter (July-September) of 2010 compared to the second quarter (2Q 2010).
In the first 9 months of this year, Delta Dunia posted Rp351.93 billion net income, Rp755.96 billion operating profit, and Rp4.19 trillion revenue.
The third quarter of 2010 reflected better performance compared to the 2Q result. Delta Dunia's 3Q 2010 revenue at Rp1.49 trillion was higher than Q2 and Q1 revenue which stood at Rp1.42 trillion and Rp1.28 trillion respectively.
In return, income from operations of the company in 3Q 2010 achieved Rp294.1 billion, higher than the previous two quarters of Rp231.82 billion (2Q) and Rp230.04 billion (1Q).
Operating margin in the 3Q showed a slight improvement from 17.09% in 2Q to 18.03%. Net income rose to Rp145.75 billion in 3Q 2010 from Rp55.54 billion in 2Q (the worst for the whole year). But the 3Q net income remained lower than the 1Q result of Rp150.64 billion. Delta Dunia today rose 2.10% to IDR1,460 per share, reflecting IDR9.91 trillion market capitalization.

Disclosure: No position at the stock mentioned above.

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